The Securities Board of Nepal (Sebon) is planning to enforce a regulation that will bar listed companies from taking multiple corporate actions at once, in a bid to rein in activities that could influence the capital market and hurt the interest of investors.

If implemented, this regulation will prevent listed companies from reversing some of the crucial decisions made in the past.

The securities market regulator is mulling over introducing such a provision after a number of listed companies jumped in to roll out future plans without accomplishing the ongoing task.

“We are considering to issue a circular to the companies to complete implementation of action that has been executed before moving on to the next,” said Sebon Spokesperson Niraj Giri.

In this regard, Sebon on Monday directed Reliable Development Bank to first implement its previous announcement of issuing rights shares to its shareholders. At its 10th annual general meeting held a few months ago, the bank had offered rights shares to its shareholders at the ratio of 1:1.

However, midway through this action, it has agreed to sell all of its shares to Global IME Bank through an acquisition deal.

“The decision on issuance of right shares is price sensitive. So, failure to implement this plan will hit investors’ interest,” Sebon said in a statement on Monday. It has also directed Reliable Development Bank to issue rights shares to its shareholders prior to selling its shares to Global IME.

Giri said the move was aimed at safeguarding the investors’ interest.

Meanwhile, Sebon is also planning to enforce a code of conduct to discipline companies engaged in insider trading. Insider trading

takes place if confidential information is leaked. This malpractice benefits a few influential market players, putting the interest of small investors at risk.