Promoter lock in Period for Hydropower in Nepal

A lock-in Period is a predetermined time frame in which promoter shareholders are not allowed to sell, transfer, or dispose of their shares. In Nepal, there is a lock-in period of 3 years on NEPSE for only sectors like hydropower, investment, manufacturing and processing, and hotels after IPO to the general public. In the case of hydropower and manufacturing and processing companies, even projects that affect locals and allot them shares are also locked for 3 years. However, there is no reservation of IPO for locals in hotels and investment sectors. Normally, this is done to keep the major shareholders committed to the company's growth, as listed on NEPSE.

Also Read: Unlock Date of Mutual funds for IPO.