Scrip ownership transfer row: NEPSE asks NCC Bank to stall its AGM & Suspend Book Closure Date

ShareSansar, December 23:

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 bank management, which was making a full-fledged preparation for the upcoming AGM are now in dilemma, and are holding internal meeting to address the situation in the wake of NEPSE's request.

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 buyers 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.