Wednesday, October 18, 2017

Nepse suspends trading in shares of 26 firms

The Nepal Stock Exchange (Nepse) today suspended share trading of 26 companies as they have failed to pay their annual dues on time. The listed companies are required to pay their annual fee dues within the first three months – the first quarter – of completion of the fiscal year. The listed companies must – apart from paying annual fee to Nepse – also submit their annual report to the capital market regulator. But most of them every year miss the deadline.
Some 196 companies that are listed at the Nepse have to pay an annual fee ranging from Rs 15,000 to Rs 50,000 depending on their paid up capital. According to Nepse, a company with a paid-up capital of up to Rs 10 million has to pay Rs 15,000 annually, whereas a company with a paid-up capital of Rs 10 million to Rs 50 million is required to pay Rs 25,000. Likewise, a company with a paid-up capital of Rs 50 million to 100 million has to pay Rs 35,000 and those with a paid-up capital of more than Rs 100 million are required to pay Rs 50,000 as annual fee.
According to assistant spokesperson for Nepse Murahari Parajuli, trading in stocks of several companies has been halted for years. Of the total companies whose share trading has been suspended, some companies including Jyoti Spinning Mills and Gorakhkali Rubber Udyog have stopped operations and others like Hotel Yak and Yeti has applied for delisting but they have not delisted their shares yet.
"After repeated reminders, more than 20 companies cleared their dues in the last two days," Parajuli added.
Meanwhile, some of the companies have also failed to submit their report to the Securities Board of Nepal (Sebon) this year too. According to capital market regulator Sebon, some 98 companies missed the deadline to submit their reports in the last fiscal year. Apart from sending reminder to them, Sebon has not been able to take any action against them as usual as the law has not been clear on action against them.

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