NEPSE Book Closure Date: What Investors Need to Know
Book closure dates are key events in Nepal’s stock market, but many investors misunderstand them. This blog explains what a book closure date is, why companies announce it, and how it affects dividends, bonus shares, and your trading strategy in NEPSE.
Introduction: Why Book Closure Confuses Investors
Every dividend season in NEPSE, companies announce book closure dates. Investors often panic, unsure whether to buy or sell before the date. Some expect prices to rise, others fear they’ll miss out on dividends.
👉 In reality, book closure is a technical process that decides who gets company benefits. Understanding it can save you from costly mistakes.
1. What Is Book Closure?
Book closure = A period when a company temporarily closes its shareholder register to determine who qualifies for dividends, bonus shares, or rights issues.
If you own shares before book closure, you’re eligible.
If you buy shares on or after book closure, you won’t get benefits.
2. Why Companies Announce Book Closure
To prepare for Annual General Meetings (AGMs).
To decide eligible shareholders for dividends and bonus shares.
To process rights share issuance.
👉 It ensures benefits are distributed fairly to those already holding shares.
3. Book Closure vs Record Date
Record Date: The exact date when eligibility is checked.
Book Closure: The range of days the register remains closed.
In Nepal, book closure usually includes the record date.
4. How Book Closure Affects Share Prices
On the ex-dividend date (just before book closure), share prices usually fall to adjust for dividend/bonus distribution.
Example: If a company announces a 20% bonus, the stock price may drop proportionally after book closure.
This prevents “double counting” of value.
👉 Investors shouldn’t assume book closure = guaranteed profit.
5. Common Investor Mistakes in Nepal
Buying Just Before Book Closure – Expecting free dividends/bonus, but price adjusts downward.
Selling Too Early – Missing out on eligibility due to timing confusion.
Ignoring Taxation – Cash dividends are taxed at 5%.
Confusing Rights vs Bonus – Rights require extra investment; bonus doesn’t.
6. Smart Investor Strategies
Hold Long-Term – Focus on fundamentals, not just dividend dates.
Plan Ahead – Check book closure announcements early.
Avoid Panic Buying – Don’t rush in just for short-term dividend capture.
Track with Tools – Use platforms like Nepalytix to monitor upcoming book closures.
7. Why Book Closure Matters in NEPSE
Dividends and bonuses are major drivers of retail sentiment in Nepal.
Misunderstanding book closure leads to poor timing and losses.
Investors who master the process can avoid FOMO and trade more confidently.
Conclusion: Book Closure = Eligibility, Not Free Profit
Book closure dates are simple once you understand the rules:
Own shares before book closure = eligible.
Buy after = not eligible.
Share prices adjust accordingly.
👉 For investors, the lesson is clear: Don’t trade blindly on book closure rumors. Instead, treat it as one piece of your long-term investing strategy.