Securities Board of Nepal Directs Special Surveillance on Affected Hydropower and Listed Companies

1st September 2026, Kathmandu

The Securities Board of Nepal (SEBON) has instructed market authorities to implement strict surveillance mechanisms on the trading activities of listed companies, specifically focusing on hydropower projects impacted by natural disasters.

SEBON Directs Special Surveillance

Surveillance Rationale and Target Scope

Regulatory Objective: The measures aim to protect investor interests, ensure complete market transparency, and prevent market manipulation.

Target Infrastructure: Special oversight applies to companies operating or constructing projects along the Trishuli and Bhotekoshi river systems damaged by severe flooding.

Immediate Actions: Authorities must compile a comprehensive list of directly or indirectly affected entities and track unusual price fluctuations, volume spikes, and order anomalies prior to material disclosures.

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Mandatory Corporate Disclosures

Operational Impact: Affected companies must immediately declare disaster details, structural damage, impacts on power generation, physical asset losses, and human casualties.

Financial Disclosures: Companies are required to disclose insurance coverage status, preliminary financial losses, debt-servicing impacts, bank loan obligations, and mitigation strategies.

Framework Development: SEBON directed the establishment of formal procedural guidelines to handle material disclosures, trading suspensions, and trading resumptions for listed entities facing major crisis events.

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