KATHMANDU, Oct 26: The Securities Board of Nepal (SEBON) has directed listed companies to send cash dividends with clear details to the shareholders’ bank accounts.
The board has directed to send the dividend in such a way that only the name of the share registrar appears in the bank statement when the dividend paid by the listed company to its shareholders is deposited in the bank account of the shareholder until now. However, the board has directed to send the dividend in such a way that it becomes clear to the shareholders about the company, fiscal year and the rate of the dividend.
Sebon brings new norms for rights issue, FPO
The board issued the notice following the complaints by the shareholders regarding the lack of clarity while the dividend is deposited.
As per the instructions issued by SEBON, the company will now have to clearly include the name, income and amount, among other information of the company when paying cash dividend to the shareholder's bank account by itself or through its share registrar.
