September 16, Kathmandu-Nepse has instructed listed companies to send information sensitive for securities market in a clearer way. Issuing a letter to listed companies on Friday, Nepse instructed them to notify it about book closure in a clearer way by including details of benefit distribution in both numeric and words in a format prescribed by it.
This new format on dividend announcement will leave less room for repeat of such mistake in the days to come, according to Nepse officials.
The latest measure of the Nepse comes in the wake of recent incident related to wrong disclosure of the dividend announcement by Nepal Investment Bank Ltd (NIBL). On September 6, the commercial bank had sent an official letter, stating that its board of directors proposed 25 percent of stock dividend and 15 percent cash dividend from the profit of the last fiscal year 2016/17. However, it corrected the dividend figures after an hour by sending another letter to the Nepse within an hour. The bank attributed the mistake on the dividend figure to 'typing error'.
Trading of all shares of NIBL of that day was cancelled by the Nepse on the order of Securities Board of Nepal (Sebon).