Seven listed companies resume trading
KATHMANDU:
Among the 40 suspended ones, the trading of seven suspended companies resumed in the secondary market today after they made the payment of renewal fee to Nepal Stock Exchange (Nepse).
“Today two manufacturing companies, one hotel, one insurance company, two finance companies and one development bank paid the renewal fee,” according to the Nepse.
Among the suspended ones, three companies — Jyoti Spinning Mills, Nepal Bikas Bank and Samjhana Finance — are in process of getting liquidation while one finance company — Birgunj Finance has already got merged into another development bank.
The companies suspended yesterday include seven finance companies, 10 development banks, two insurance companies, two trading companies, two hotels, one film company and nine manufacturing companies along with Nepal Electricity Authority’s debenture.
The listed companies that failed to pay the annual renewal fee by the third month of new fiscal year are suspended from the trading. Suspension of the listed companies for failing to pay the renewal of listing fees has become annual ritual for the Nepse.
Most of the real sector companies that did not pay the renewal fee are not renewing from last few years in order to get delisted. The shares of these companies also see little trading at the Nespe.
Similarly, Yak and Yeti Hotel has publicly sought for de-listing. “We are refraining from delisting these manufacturing companies as delisting will further contract the presence of real sector companies on Nepse,” said managing director of Nepse Shankar Man Singh.
Nepse does not mind lugging around these defunct companies in stock market just for the sake of their mere presence in financial intermediary dominated capital market.
“Among 210 listed companies, 176 are financial intermediaries — banks and financial institutions, and insurance — if we delist these non financial intermediaries then Nepse will appear as the stock exchange for the financial institutions only,” Singh added.
As per the current rule, the companies can be delisted, if they fail to submit renewal charge, discontinue AGM, failed to audit financial status, unreachable contact address of
registered office and discontinuation of communication from the promoters, board of directors and management of the concerned companies to the stock exchange and the regulators.
Most of the manufacturing and trading companies are eligible for being delisted according to the rule.
Nepse had delisted five manufacturing and trading companies in 2008 for not complying criterion.
