More than 4.23 crore unit shares await to get listed; Disagreement between NEPSE and SEBON harm the investors

Due to the introduction of C-ASBA, the process for the application and allotment of shares have become a lot quicker. The process that used to take months is now completed within days.

Due to this, the bank balance is being debited quickly after the allotment of shares. It would not have been a problem if the shares were being listed in the secondary market with the same efficiency.

The following companies are awaiting to get listed from NEPSE in order to start exchange in the secondary market:

1. 1,38,600 unit bonus shares of Mirmire Microfinance Company Limited
2. 95,56,564 unit bonus shares of Siddhartha Bank Limited
3. 4,80,000 unit IPO of Nadep Laghubitta Bittiya Sanstha.
4. 1,62,29,059 unit bonus shares of Himalayan Bank Limited
5. 1,36,614 unit bonus shares of Nepal Insurance Company
6. 33,79,500 unit right shares of Karnali Development Bank
7. 76,000 unit bonus shares of Suryodaya Laghubitta
8. 1,14,15,163 unit FPO of NMB Bank Limited
9. 11,00,000 unit IPO of Panchakanya Mai Hydropower Company 

“For NMB FPO my bank account was debited on 18th July 2018 but till date, share is not credited in my Demat Account.” says an investor. “21 days is a very long time, who is going to pay the interest? Bank account is debited so the bank is not going to pay interest and there is no share to sell in our account” he adds.

When questioned about the delay in the listing process, NEPSE responded that the delay was due to the issue of deduction in the listing fees. The deduction was implemented from Shrawan 1 along with the implementation of Securities Listing Bylaws, 2075. Also it was informed that NEPSE has sent the revised proposal for the listing fees to be reviewed in the Securities Board of Nepal and the wait for getting the shares listed might be extended even longer.

The investors are getting affected due to the conflict between SEBON and NEPSE. The investors are losing money along with the increased delay for the listing of shares. Such acts by the regulatory bodies is not supposed to have a positive effect on the already vulnerable stock market. We can hope that the conflict clears soon and the investors can involve in the transaction of their respective shares.