Nepse classifies 130 companies in Class 'A'

Nepal Stock Exchange (Nepse) classified some 130 companies – out of 230 listed companies – under the Class 'A' class, which is more than 10 compared to last  fiscal year ago, but still less than three compared to the fiscal year 2011-12.

Last fiscal year, some 120 companies were under the class 'A' companies, whereas in the fiscal year 2011-12, there were 133 companies under the classification of blue chip companies.

Twenty-five commercial banks, 58 development banks and 27 financial institutions have made it to the elite list. Likewise some 14 insurance companies and three hydropower companies have also been categorised as the blue chip companies. The list has only one under manufacturing sub group and hotel sub group.

According to the bylaws, only the companies having minimum paid-up capital of Rs 20 million and at least 1,000 ordinary shareholders can be categorised under the class 'A' companies. They should also post profit for three consecutive years, apart from the book value that should not be less than the paid-up value, and have been submitting their particulars of business and statements of income and expenditure of the financial year within six months of the completion of that fiscal year.

Nepse has been classifying listed companies since the fiscal year 1996-97 under the Securities Listing Bylaws 1996.