NCC Bank Scrip ownership transfer row: NCM Merchant to transfer Binu Shrestha sold share

ShareSansar, January 2:

NCM Merchant Banking Limited has said that they will transfer the share sold by Binu Shrestha of NCC Bank Limited. NCM Merchant Banking is the share registrar of NCC Bank Limited. Now all the stock brokers have to send the share for name transfer within this Monday.

NEPSE GM Sita Ram Thapaliya said that the upcoming AGM won’t be affected if this issue will be settled soon. NCC Bank has already cancelled its 16th and 17th AGM which was announced earlier. Now the way is clear for the bank to announce new date for its cancelled AGM.

Broker Association has already informed all the stock brokers to clear this issue within coming Monday.

Earlier, In a bid to settle the complications related to the ownership transfer of NCC Bank Limited shares sold by Ms Binu Shrestha, Nepal Stock Exchange Limited (NEPSE) has written a formal letter to the bank management to stall its Annual General Meeting slated for Poush 30.

With this the date of the AGM, which was due to endorse 40 percent dividend, including 38 percent bonus shares to  the shareholders from the net profit the bank posted in the last fiscal year 2069/70 and 2070/71, has become uncertain.

In its letter dated December 23, NEPSE has stated it has invoked Article 48 of the Securities Act-2063, which allows it to issue directive to the listed companies in case of the breach of the agreement with the stock exchange, or to make the trading clean and regulated as well as to safeguard the interest of the investors.

The ownership transfer row started after the shareholders of NCC Bank Ms Binu Shrestha sold shares through licensed stock broker and these shares still could not be transferred on buyer’s name.

Over the past few weeks, key stakeholders, including SEBON, NEPSE officials, brokers and investors had been holding intensive talks to defuse the problem and were expected to defer the AGM of the bank.