Sebon bars trading of Prabhu Bank; trading suspended in Nepse

Trading of Prabhu Bank Limited (PRVU) has been suspended from today in Nepal Stock Exchange Limited (NEPSE).The trading has been suspended as per the direction of Securities Board of Nepal (SEBON). The commercial bank’s trading was resumed on Ashwin 17, 2073 only for the shareholders of Prabhu Bank .The bank has been hitting circuit break after its trading was resumed. Nepse had requested the central bank and Sebon to solve the issue of share price adjustment which has aroused due to the trading of Prabhu Bank shares only. Thus the Board had directed to suspend the trading of Prabhu Bank as for now. As mentioned in the press statement issued by the Board, from now onwards BFIs can start trading of their share only after the completion of the merger process. Also, the bank had listed its 20% right share in Nepse for trading and the adjusted price of the bank after right share was at Rs 363. The trading of Prabhu Bank was halted in Nepse since September 30, 2015. It's been almost a year and the trading of shares of Prabhu Bank was in halt though its merger process with Grand bank had completed and joint operation started on February 12, 2016. Prabhu and Grand Bank Nepal had started joint operation as Prabhu Bank from February 12, after getting final merger approval Nepal Rastra Bank on January 29. The share swap ratio of Prabhu and Grand bank was fixed at 121.45:65.58.