"Purchase Source" problem of NMB Bank's merged scrips solved; Mero Share will be updated by tomorrow

Fri, Nov 1, 2019 12:32 PM on Stock Market, Latest,

NMB Bank and Om Development Bank have begun joint transactions from Aswin 11, 2076 after the successful merger process. Post-merger, the paid-up capital of the bank stands at Rs 11.53 arba while the reserve stands at Rs 8.62 arba.

After the merger, the joint company has been listed as NMBBL in Nepal Stock Exchange. However, one problem has created a hassle for investors. Since the settlements can now be done via Mero Share Software of CDS and Clearing, investors are required to update their "Purchase Source" for WACC calculation for Capital Gains Tax Calculation.

In the purchase source section, the system automatically tracks the source of scrip and suggests cost price. However, in the case of NMBBL the suggested price is Rs 100 which puts all investors who bought the shares in the secondary market or FPO into a loss. On the other hand, they can also edit it for a higher price than at which they had purchased decreasing the tax liability.

Upon conversation with an official at CDS and Clearing, he clarified that the system will be updated shortly as they had received the script just yesterday. Therefore, once the system is updated, the purchase source will correctly track your purchase history for NMBBL. In the case of the uninformed investors who have already inserted Rs 100, they can change it by contacting their respective borrowers. Likewise, those who have entered a higher price will also be flagged by the system and changes will be made.

Similarly, the merged companies' scrips are exempt of Capital Gain Tax for two years.