Kathmandu. The Securities Board has published a draft of the guidelines that will suspend the share trading of companies going for mergers and acquisitions for 15 days only. In the guidelines published by the Securities Board, it is mentioned that share trading will be opened 15 days after the merger and acquisition.

At present, the share trading of organizations going through mergers and acquisitions used to be suspended until the integrated transactions. The National Bank had announced in its monetary policy that in the case of mergers and acquisitions of banks and financial institutions, the suspension of share trading will be in accordance with the rules of the Securities Board.

The Securities Board has published the Merger and Acquisition Guidelines, 2079 (preliminary draft) and has provided that no suspension of share trading should be held for more than 15 days. The board has now released the draft of the guidelines. It said that the guidelines will be issued after taking suggestions.

In the guidelines of the board, it is mentioned that the organized organization that has received approval for merger or acquisition should give the information of the date of the integrated business transaction to the board, the securities market and the central depository company after receiving the approval of the integrated business transaction in accordance with the prevailing company law.

According to sub-section (1), from the date of the integrated business transaction, the stock market shall suspend the stock transaction for a maximum of 15 working days for the purposes of matching the shares of the merging entity or the acquiring entity and the merging entity or the target entity, re-registration of securities, dematerialization and listing of securities, etc. It is mentioned in the draft of the board.