Nepse allows transactions

Nepal Stock Exchange (Nepse) has allowed share transaction of eight companies after they paid their renewal fee. However, only Nepal Bangladesh Bank's shares have been traded at the floor today.
"Some of the companies — whose shares are not being traded at the floor for a long time and have not paid renewal fee from last year — could be delisted," Rewat Bahadur Karki, general manager and chief executive officer (CEO) of the Nepse said adding that after a little wait for them to come to Nepse for renewal, the process of delisting will start.
On Monday, Nepse publishing a notice had freezed share transactions of 24 companies including a commercial bank, Nepal Bangladesh Bank (NBB) and a development bank, Deprox Development Bank after they failed to pay their renewal fees for this fiscal year.
"The listed companies must pay their renewal fee within the first three months of the fiscal year," Karki said. The failure in paying the renewal fee will result in the trading halt at the Nepse floor.
However, Nepse has recorded a whopping growth of 13.97 points today to post 878.86 points. Similarly, banking sub-index has also registered a growth of 16.38 points to post 951.46 points.
"The pertaining issue is what will happen to the small shareholders of those companies when they are delisted," said Mahesh Pandit, an investor adding that there is always a danger of making fool of the small investors by promoters as can amass wealth and declare the company a bankrupt.
"Promoters must be brought to the book to protect the small investors from being cheated," he said adding that Necon Air's shares used to be traded at Rs 700 but now the investors are on the road. "How can investors get their money back and promoters brought to the book?" he asked.
The government must prepare a mechanism for the protection of investors in case the companies like Nepal Med Ltd and Bansbari Leatherage run over night amassing public's money.

Who paid
Nepal Bangladesh Bank,
Kathmandu Finance,
Union Finance,
Lalitpur Finance,
Deprox Development Bank,
Nepal Insurance,
NB Insurance,
Prudential Insurance

Delisted companies (in February, 2007)

Nepal Battery Co Ltd
Juddha Match Factory
Nepal Plywood & Bobin Co Ltd
Himal Cement Co Ltd
Sayapatri Color Lab
Nepal Med Ltd
Ace Laboratories (Nepal)
Bansbari Leatherage
Necon Air Ltd
Nepal United Co
Plastic Trading Co
Nepal Byapar Bikas Co

Earlier, Nepal Stock Exchange (Nepse) has publishing a notice on Sunday freezed share transactions of 24 companies including a commercial bank – Nepal Bangladesh Bank (NBB) — after they failed to pay their renewal fees for this fiscal year.

According to the rule, the listed companies must pay their renewal fee within the first three months of the fiscal year. However, their failure to pay the renewal fee may hit the fate of around 8,15,320 investors, who have invested in shares of these 24 companies hard.
Hotel Yak and Yeti is the only hotel, among the listed under the hotels group that has not paid its renewal fee, whereas there are more financial institutions including a commercial bank and a development bank.
"Though they are not declared bankrupt like Necon Air and Nepal Med Ltd, it has still created panic to the small investors," said one investor without wanted to be quoted.
Meanwhile, the Nepse didnot seem to be affected by this decision as it today posted a growth of 5.40 points to 864.89 points and banking sub-index has also posted 7.02 points growth to 935.08 points.
According to the Nepse, these companies have to pay from Rs 15,000 to Rs 50,000 as a renewal fee. But they did not pay the fee despite repeated calls by the Nepse.
However, they will be allowed to resume their shares' transactions if they pay the renewal fee, according to the Nepse.
The companies that failed to pay renewal fee
Nepal Bangladesh Bank
Kathmandu Finance,
Union Finance,
Lalitpur Finance,
Pokhara Finance,
Nepal Bangladesh Finance,
Sirjana Finance,
NIDC,
Deprox Development Bank,
Shreeram Sugar Mills,
Morang Sugar Mills,
Biratnagar Jute Mills,
Butwal Spinning Mills,
Harisiddhi Bricks Tiles Factory,
Birat Shoe Ltd,
Himgiri Textiles,
Fleur Himalayan,
Hotel Yak and Yeti,
National Productivity and Economic Development Centre,
Nepal Trade Development Co (Koshi),
Nepal Trading Ltd,
Nepal Insurance,
NB Insurance,
Prudential Insurance