Salt Trading Company (STC), IME Financial Institution (IMEFIL), Prabhu Finance (PRFL), Malika Bikas Bank (MDBL), Api Finance (AFL), Diprox Development Bank Ltd (DDBL) and Kasthamandap Development Bank Ltd (KDBL) paid their annual fee today.
The trading of two of the suspended companies Goodwill Finance Company (GFCL) and Nilgiri Bikas Bank (NGBL) was resumed yesterday after they paid the renewal fee yesterday, according to the Nepse.
The listed companies have to pay the annual listing renewal fee within the three months of the end of fiscal year to be allowed to trade shares, but these companies failed to make the payment within the deadline thus the trading was suspended.
However, the trading can be resumed as soon as the companies pay the required fee to Nepse. "Nepse suspends the trading of companies for delay in paying the renewal fee," an official at the Nepse, said, adding that about half of the suspended companies are almost non-functioning. "They do not bother paying the renewal fee as they are non functional and the functional one, which see their shares being traded everyday also put off paying the renewal fee till the eleventh hour," he added.
Some of the suspended companies including Nepal Development Bank and Jyoti Spinning Mills are in the process of liquidation, while others like Samjhana Finance's trading has already been suspended back in June when Nepal Rastra Bank (NRB) declared it a 'troublesome financial institution' officially.
Likewise, companies such as Flour Himalayan, Shree Ram Sugar Mills and Shree Bhrikuti Pulp and Paper — that observe little or no trading — had paid the listing renewal fee last year, informed the official.
The companies need to pay the listing renewal fee depending on their capital structure of the company. "The companies with capital more than Rs 100 million have to pay Rs 50,000 that is the highest amount," Shankar Man Singh, general manager and chief executive officer of Nepse informed.
The companies need to be serious and pay the renewal fee in time as the suspension will create trouble for the investors.
"Despite the stocks of the companies doing well and being traded in great numbers, the delay in payment of fees reveals the companies' careless attitude towards the investors' in secondary market," the official said, adding that the negligence of companies about paying the renewal fee leads to trading suspension that will definitely affect the investors, who wants to buy or sell their stocks according to their plan and necessities.
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