"It's not feasible to have a one-year ban on selling shares."
The Nepal Securities Board has been alerted by the Nepal Non-Life Insurance Professionals Association to the rule prohibiting directors from selling their shares for a period of one year.
Rule 38 (1 a) of the Securities Registration and Issuance Regulations, 2079 states that it is inappropriate for an organized director to be prohibited from purchasing or selling linked business shares while they are serving in their position or for a year following their retirement.
"We inform you that the rules regarding the sale of shares are very strict," the union said in a statement. It is unfair to discriminate against directors because they are investors just like the rest of the company's shareholders. They are chosen by the shareholders at large and serve as their representatives on the board of directors.
The Securities Board Chairman Mahesh Baral has been requested to amend the aforementioned provision by the Union President Rajendra Malla, Vice President Manohardas Mull, General Secretary Mahendra Krishna Shrestha, Treasurer Ramesh Niraula, and members Azad Shrestha and Kunal Kayal.
According to Union President Malla, there is no distinction between the financial interests of the directors and the other shareholders of the company from the perspective of investments.
The association has stated that denying a director access to the same resources as other shareholders following their investment in the company is unfair.
Chairman Malla states that a businessman's ability to perform basic home tasks, such as enterprise and business diversification, will be hampered if he is unable to sell his moveable property.
"We request to amend the provision of selling up to 50% of the share ownership while holding the position of director, and the provision prohibiting the purchase and sale of any kind of shares of the same organization until a person remains in the position of director and for one year after leaving that position," the association states in its statement.
