The Securities Board of Nepal (SEBON) has directed the Nepal Stock Exchange (NEPSE) to ensure that listed companies affected by the recent floods publicly disclose details of the damage and their operational status.

The directive comes after severe flooding along major river systems, including the Trishuli and Bhote Koshi, caused significant damage to infrastructure and several listed companies, particularly hydropower projects.

SEBON has asked NEPSE to ensure that affected companies provide investors with accurate and timely information regarding physical damage, disruption to operations and the potential financial impact of the disaster.

The regulator has also instructed NEPSE to maintain strict surveillance of share trading in companies affected by the floods. The monitoring is intended to prevent insider trading, market manipulation and unusual price movements based on information that may not yet be publicly available.

The directive is aimed at strengthening investor protection and market transparency during a period when disaster-related developments could materially affect the financial position and valuation of listed companies.

SEBON's move also seeks to ensure that all investors have equal and timely access to price-sensitive information, reducing the risk of information asymmetry following the disaster.

With several hydropower and infrastructure companies potentially facing extended operational disruptions, disclosures regarding the extent of damage, insurance coverage, repair timelines and expected financial losses could become important factors for investors assessing affected stocks.