Kathmandu, October 21
The Nepal Stock Exchange (Nepse) has suspended the share transaction of 48 firms as they have failed to make timely payments of the annual renewal fees.
“As per rules, listed companies must pay the annual renewal fees for regular transactions within the stipulated timeframe,” informed Murahari Parajuli, spokesperson for Nepse, adding that transaction of 48 listed companies that had not yet cleared the dues had been suspended.
Most of the companies whose transactions have been halted are hydropower firms, microfinance companies, development banks and hotels.
As per law, the listed companies must pay their renewal fees to Nepse within October 17.
The listed companies need to pay the renewal fee as per their paid-up capital. As per regulations, if a company has paid-up capital of up to Rs 10 million it must pay Rs 15,000 as annual renewal fee. Likewise, if companies have paid-up capital between Rs 10 million and Rs 50 million they need to pay Rs 25,000, and for firms with paid-up capital of Rs 50 million to Rs 100 million the annual renewal fee is Rs 35,000.
For companies with paid-up capital of above Rs 100 million, the annual renewal fee has been fixed at Rs 50,000.
As per Parajuli, some companies paid their annual renewal fee today. “Nepse will allow trading of shares of these firms from Monday.”
As per Nepse, there are 198 companies listed at the country’s sole secondary market. “Once the companies clear their dues then Nepse allows them to resume transactions from the next trading day,” said Parajuli.
Earlier too, in 2009, seven companies had their transactions suspended as they had failed to make timely payment. Likewise, in 2012 and 2014, 30 and 59 firms, respectively, had been suspended.
Meanwhile, Nepse has failed to launch the fully automated electronic trading system of shares in the secondary market. It had planned to launch the system on July 17 but postponed it to September 10. However, Nepse failed to do so on
the revised date too.
“At present, software vendor company is testing several components like for placing orders and new listings, among others,” informed Parajuli, adding Nepse has yet to fix the date for launching electronic trading system. “We have already missed two deadlines so I do not want to give any date now.”
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Written by Nikki Hamal
This news first appeared on https://thehimalayantimes.com/business/stock-market-suspends-share-transaction-of-48-companies/ under the title “Stock market suspends share transaction of 48 companies”. Bolchha Nepal is not responsible or affiliated towards the opinion expressed in this news article.
