Nepse suspends trading in shares of 26 firmsThe Nepal Stock Exchange (Nepse) has suspended trading in the shares of 26 companies as they have been behind in paying their annual dues to the bourse.
The Nepal Stock Exchange (Nepse) has suspended trading in the shares of 26 companies as they have been behind in paying their annual dues to the bourse.
The 196 companies listed on the country’s only secondary market have to pay an annual fee ranging from Rs15,000 to Rs50,000.
According to Nepse, companies with a paid-up capital of up to Rs10 million have to pay Rs15,000 annually. Likewise, companies with a paid-up capital of Rs10-50 million are required to pay Rs25,000, companies with a paid-up capital of Rs50-100 million have to pay Rs35,000 and those with a paid-up capital of more than Rs100 million are required to Rs50,000 as annual fee. The listed companies are required to settle their dues within the first three months of the fiscal year.
Almost every year, 20-30 companies fail to pay the fee on time, said Murahari Parajuli, assistant spokesperson for Nepse. He added that some of the business entities were from rural areas. “After repeated reminders, more than 20 companies cleared their dues in the last two days.” According to Parajuli, trading in stocks of several companies has been halted for years. Jyoti Spinning Mills and Gorakhkali Rubber Udyog have stopped operations but they have not delisted their shares.
The errant companies have been found to have failed to report to the Securities Board of Nepal (Sebon) too. According to Sebon records, 98 companies missed the deadline to submit their reports in the last fiscal year. Apart from sending caution notices to such companies, Sebon has not taken any action against them.
Nepse closes 9.17 points higher
The Nepal Stock Exchange (Nepse) closed 9.17 points higher on Wednesday, the last day of trading before the Tihar holidays. The market opened at 1,559.18 points to fall to a low of 1,548.43 points before rising to close at 1,568.35 points.
Almost all the trading groups posted gains in their indices. The insurance group rose 97.48 points, the highest gain, to close at 8,594.36 points. Promoter shares of National Life Insurance observed the largest turnover of Rs44.06 million.