The capital market regulator is going to enforce a separate regulation to take action against listed companies that fail to report on time. Many listed companies that have been disregarding Securities Board of Nepal's (Sebon) directive have been getting away with it at present.
According to the regulation, the listed companies are required to submit their unaudited quarterly financial reports to it within a month of the completion of the quarter. Likewise, organisations that have received operating licences from Sebon, including stockbrokers and merchant bankers, also need to submit their financial reports within the deadline. But of them has been disobeying the regulator.
According to the regulator, some 98 out of the 226 listed companies have not submitted their financial reports till date evenafter the deadline August 16.
Most of them are development banks. According to the Sebon, some 40 out of the 77 development banks have not submitted their financial reports. Likewise, some 20 out of the 34 finance companies have not submitted their reports, whereas some 15 companies related to manufacturing and processing, four companies in the trading group, seven commercial banks and six hydropower companies have failed to submit their reports.
However, Sebon has not taken any action against these companies due to lack of separate regulation to take action against such firms. According to the Securities Act 2006, companies violating the rule can be fined or their transactions suspended.
The listed companies have to submit their annual audited reports within five months from the start of the fiscal year. The deadline for Sebon’s licensed institutions is three months from the end of the previous fiscal year.
Nepse suspends trading of shares of 6 firms
KATHMANDU: The Nepal Stock Exchange (Nepse) on Monday suspended share trading of six stock broking companies – including Agrawal Securities, Ashutosh and Brokerage and Securities, Bhrikuti Stock, Creative Securities, Shree Krishna Securities and South Asian Bulls – for failing to pay the regulation fee to the Securities Board of Nepal (Sebon). According to capital market regulator, stock broking companies are required to pay 0.6 per cent of the total service charge they receive.
According to the regulation, the listed companies are required to submit their unaudited quarterly financial reports to it within a month of the completion of the quarter. Likewise, organisations that have received operating licences from Sebon, including stockbrokers and merchant bankers, also need to submit their financial reports within the deadline. But of them has been disobeying the regulator.
According to the regulator, some 98 out of the 226 listed companies have not submitted their financial reports till date evenafter the deadline August 16.
Most of them are development banks. According to the Sebon, some 40 out of the 77 development banks have not submitted their financial reports. Likewise, some 20 out of the 34 finance companies have not submitted their reports, whereas some 15 companies related to manufacturing and processing, four companies in the trading group, seven commercial banks and six hydropower companies have failed to submit their reports.
However, Sebon has not taken any action against these companies due to lack of separate regulation to take action against such firms. According to the Securities Act 2006, companies violating the rule can be fined or their transactions suspended.
The listed companies have to submit their annual audited reports within five months from the start of the fiscal year. The deadline for Sebon’s licensed institutions is three months from the end of the previous fiscal year.
Nepse suspends trading of shares of 6 firms
KATHMANDU: The Nepal Stock Exchange (Nepse) on Monday suspended share trading of six stock broking companies – including Agrawal Securities, Ashutosh and Brokerage and Securities, Bhrikuti Stock, Creative Securities, Shree Krishna Securities and South Asian Bulls – for failing to pay the regulation fee to the Securities Board of Nepal (Sebon). According to capital market regulator, stock broking companies are required to pay 0.6 per cent of the total service charge they receive.
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