Presently, many companies have undergone merger and acquisition process to meet the capital requirement as prescribed by the Nepal Rastra Bank. Merger and acquisition are performed for the sake of all the stakeholders of the company but if we deeply look at some of the merger and acquisitions then there are many matters which makes investors really trouble and frustrated with the stocks they are holding. The main reasons behind their anger and frustration is due to untimely listing of shares that they cannot trade shares for long time which increases the cost of shares and they face loss of opportunities as well. Though many companies completes their merger and acquisition in time and joint operation, they are not active to list the share in Nepal Stock Exchange (NEPSE) for trading.
As per the new amended Securities Issue and Allotment Guidelines, 2074 issued by Securities Board of Nepal (SEBON), “It is clearly mentioned that those companies which have completed the merger and acquisition and started their joint operation should have listed share for trading in NEPSE within 15 days of the joint operation, in case if any problems.”
Being under above provision, there are many companies whose share have not been listed till date after the joint operation within the stipulated time frame. Thus, the one and only regulatory body of Nepal for the whole stock market, SEBON must take necessary actions if it really wants welfare of all the investors who are suffering from the demotivating practices of delay in listing.
| Company Name |
Merger / Acquisition |
Joint Operation Date |
| Kasthamandap Development Bank Limited |
Kumari Bank Limited |
Ashad 16, 2074 |
| Mahakali Bikas Bank Limited |
Kumari Bank Limited |
Ashad 16, 2075 |
| Kankrebihar Bikas Bank Limited |
Kumari Bank Limited |
Ashad 16, 2076 |
| Paschimanchal Finance Limited |
Kumari Bank Limited |
Ashad 16, 2074 |
| Cosmos Development Bank Limited |
Shangrilla Development Bank Limited |
Ashad 30, 2074 |
| Unique Finance Limited |
Civil Bank Limited |
Ashad 18, 2074 |
| Hama Merchant Finance Limited |
Civil Bank Limited |
Ashad 18, 2074 |
| Sewa Bikas Bank Limited |
Kamana Bank Limited |
Shrawan 22, 2074 |
Companies like Kasthamandap Development Bank, Mahakali Bikas Bank, Kankrebihar Bikas Bank, Paschimanchal Finance, Hama Merchant and Unique finance have not yet listed for trading in NEPSE though their joint operations took place a month ago. Thus, the concerned authority should take necessary actions to solve the issue as soon as possible.
