Nepal Rastra Bank (NRB) has handed over the Securities Board of Nepal (SEBON) with the authority to halt and release shares transactions of the banks and financial institutions (BFIs) set to be merged.
Amending the Merger and Acquisition Bylaw 2016 on Thursday, NRB has permitted the SEBON with the full authority to decide on the shares transaction of the BFIs that intend to go for unification. Likewise, the central bank has also removed the provision for such BFIs on requiring taking approval of Nepal Stock Exchange while going into merger and acquisition.
According to the SEBON, it has been considering not to halt transactions of the shares of to be merged BFIs for more than 15 days. The investors have also been demanding the authorities concerned not to hold the shares transactions for a long time period.
