Kathmandu. The Nepal Securities Board has now prepared a draft of the guidelines to stop the share trading of companies going for merger and acquisition for 15 days only.

The Securities Board is preparing the draft of Share Trading Guideline 1079 for the companies going for merger and acquisition, and now they are going to arrange that the share trading will be closed for a maximum of 15 days only after the merger agreement of the company.

"From the date of conducting integrated business transactions, share trading shall be suspended for a maximum of 15 working days for activities such as matching the shares of the merging organization or the acquiring organization and the merging organization or the target organization, re-registration of securities, dematerialization and listing of securities, etc.," the draft of the directive states.

Similarly, the board has arranged that after getting the approval of the integrated business transaction according to the prevailing company law, the organized organization that has received the approval for merger/merger or acquisition from the board must provide the information about the date of the integrated business transaction to the board, the securities market and the central depository company.