February 8: Of late, banks and financial institutions have been issuing notices related to the sale of promoter shares almost on a daily basis.

As per the notices, promoters have announced sale of millions of units of promoter shares.

According to the rules of Nepal Rastra Bank, the promoters must first offer shares to other existing promoters. Then the companies issue a 35-day notice. If the promoters are not interested to purchase the promoter shares, then such shares are opened for the public.

After the banks and financial institutions started issuing notices of the sale of promoter shares, the general investors have started questioning on social media about the reason behind the dramatic rise in the number of promoters who are willing to sell their shares.

A broker said that some people have been selling promoter shares to due to financial crisis. Experts say that investors may have had to sell their promoter shares due to the downturn in the economy, high interest rates, etc.

Compared to the previous year, the return on investment of listed companies is decreasing. The experts also noted that the promoters might have withdrawn their money back due to this reason.

Securities expert advocate Jyoti Dahal said that the promoters may have sold their shares due to the decline in returns. Dahal speculates that some may have sold the shares because they needed money and also to invest elsewhere.

Dahal said that the 35-day notice has been issued because the first priority should be given to other promoters.

Another investor Dambaru Ballabh Ghimire believes that the economic recession is the main reason for the announcement of the sale of the promoter shares. 

"They may have taken loans from many places, or they may need money for household needs," he said. Also, some promoters may have to pay interest and loans. He speculates that the shares may have been sold because of these reasons. 

Lately, the non-performing loans of banks are increasing. "Due to this reason, the promoters may have sold their shares, assuming that the return will be low," said Ghimire.

In the last one week, five listed companies issued a notice of sale of 1.69 million units of promoter shares.