Promoters step down to sell shares as loophole in lock-in rules fuels concern (opens original article in a new tab)

Promoters and directors in Nepalese listed companies are resigning to sell shares, exploiting a legal loophole in lock-in rules, raising concerns about governance and investor protection.

• Promoters resign to sell shares after lock-in periods end.
• The practice has expanded beyond hydropower to multiple sectors.
• Experts call for revised regulations to prevent misuse and ensure governance.
• A Sebon report highlights promoter exits harming corporate stability and investor returns.