The capital market regulator has directed its Board of Directors (BoDs) not to invest in the promoter shares of any company that has received any kind of permission from the board. Issuing a code of conduct for its Board of Directors, Securities Board of Nepal (Sebon) has also asked them to refrain from making any investment in the secondary market. It has said that they should not invest in the secondary market and promoter shares during his or her tenure at the board ‘to maintain secrecy and integrity’.
According to the direction, the board members can also no longer join the board of any brokerage company or any company either listed or is in the process of being listed in the secondary market. The board members have also been barred from working as full-time staff at any such organisations.
Sebon has a seven-member board, including the chairman. Three members from government agencies – joint secretaries from Finance Ministry and Ministry of Law, Justice and Parliamentary Affairs, and executive director of central bank – whereas remaining three are the representatives from Federation of Nepalese Chambers of Commerce and Industry (FNCCI), Institute of Chartered Accountants of Nepal (ICAN) and an independent member.
"Sebon board members should maintain financial transparency," the capital market regulator said in its press note. "They should not abuse the authority granted to them,” the note reads, adding that the regulator is also planning to issue corporate governance directive to the organisations that are under the supervision of the authority.
Board members will now have to get a clearance from the board before they can speak to the media as any information given by them can directly affect individual companies or the market. They are also not allowed to accept any gifts without permission, the release adds.
Sebon has already issued code of conduct to its staff members.
According to the direction, the board members can also no longer join the board of any brokerage company or any company either listed or is in the process of being listed in the secondary market. The board members have also been barred from working as full-time staff at any such organisations.
Sebon has a seven-member board, including the chairman. Three members from government agencies – joint secretaries from Finance Ministry and Ministry of Law, Justice and Parliamentary Affairs, and executive director of central bank – whereas remaining three are the representatives from Federation of Nepalese Chambers of Commerce and Industry (FNCCI), Institute of Chartered Accountants of Nepal (ICAN) and an independent member.
"Sebon board members should maintain financial transparency," the capital market regulator said in its press note. "They should not abuse the authority granted to them,” the note reads, adding that the regulator is also planning to issue corporate governance directive to the organisations that are under the supervision of the authority.
Board members will now have to get a clearance from the board before they can speak to the media as any information given by them can directly affect individual companies or the market. They are also not allowed to accept any gifts without permission, the release adds.
Sebon has already issued code of conduct to its staff members.
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