Sunday, October 21, 2018

Stock market suspends share transaction of 48 companies

Nepal Stock Exchange (Nepse) has suspended the share transaction of 48 listed companies – mostly hydropower firms, microfinance companies, development banks and hotels – as they have failed to pay annual renewal fees on time.
According to the rule, a listed company must pay its annual renewal fee – for regular transactions – within the first quarter after the completion of any fiscal year. The 48 listed companies failed to clear their dues within the first quarter that ended on October 17. The Nepse suspended their transaction today, as the share market opened after the festival holiday. The government has announced Dashain festival holiday from October 16 to October 20.
The listed companies need to pay the renewal fee as per their paid-up capital. According to the listing regulations, if a company has paid-up capital of up to Rs 10 million it must pay Rs 15,000 as annual renewal fee. Likewise, if a company has a paid-up capital between Rs 10 million and Rs 50 million, it need to pay Rs 25,000, and for a company with a paid-up capital of Rs 50 million to Rs 100 million, it has to pay Rs 35,000 annual renewal fee.
However, for a company with a paid-up capital of above Rs 100 million, the annual renewal fee has been fixed at Rs 50,000. Once the companies pay their renewal fees, their transaction will resume.
There are some 198 companies listed at the Nepse. 

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