NEPSE publishes Q2 classification of the listed companies; None of the companies fall under ‘A’ and ‘B’ category

Nepal Stock Exchange has published its second-quarter classification of the companies. The classification is made under Section 11 of Securities Listing Regulation, 2075.

As per the provision of the regulation, the listed companies are classified into four categories namely ‘A’, ‘B’, ‘G’ and ‘Z’.

None of the listed companies have fallen under ‘A’ or ‘B’ category.

The requirements for a company to be classified under ‘A’ category are:

1. Paid-up capital should be a minimum of Rs 1 arba.
2. 3 years should have passed since the listing of the company.
3. The company should be in profit for the last three years and should have distributed a dividend for the years.
4. Credit rating should be average or above average
5. The financial reports should have been prepared as per the provisions of the regulatory body
6. The company should have conducted its AGM within 6 months of the end of a fiscal year

The requirements to be classified under ‘B’ category are:

1. Paid-up capital should be minimum of Rs 50 crore
2. 3 years should have passed since the listing of the company.
3. For the last three years, the company should have registered profit for at least two years
4. The credit rating should be not below 1 point less than average
5. The company should have conducted its AGM within 6 months of the end of a fiscal year
6. Accumulated losses should not be seen

The companies not falling under ‘A’ and ‘B’ and not completing 2 years of being listed in the secondary market falls under ‘G’ category. Other listed companies fall under ‘Z’ category.