KATHMANDU, July 17: Nepal Rastra Bank (NRB) is offloading its shares in Nepal Stock Exchange Ltd (Nepse). Issuing a notice on Tuesday, the central bank said that it was divesting its stake in the country’s only stock exchange company.

The NRB’s 1.73 million units of shares at Nepse are now up for sale through auction.Though the central bank has long been planning to offload its stake from the Nepse, it was getting delayed as it was looking for the right modality for the divestment.

Now, the NRB has decided to auction its share with a face value of Rs 100 by adding premium. The central bank has fixed Rs 1,032 as the minimum bidding price for its per unit share of Nepse.

However, only bank and financial institutions, securities businessperson (stock broker, dealer, and market maker) or listed companies will be eligible to participate in the bidding, according to the NRB’s notice.

The bidding for the NRB’s shares in Nepse will remain opened until August 19. The central bank holds 34.6% stake in the country’s only bourse while the government is the majority stakeholder in the stock exchange company with an ownership of 58.66%. Nepal Industrial Development Corporation (6.12%) and brokerage firms (0.62%) are the other shareholders of Nepse.

While the government has also been saying that it also wants to divest its shares from the stock exchange company, there has not been any progress in this regard. In its Financial Sector Development Strategy, the government has said that its shares in Nepse will be divested to bring a strategic partner for the stock exchange company.

A study team formed under S R Panday five years ago to provide suggestions on the restructuring of Nepse also advised the government to privatize Nepse to bring efficiency into the market.

Stock market investors have been also urging the government to privatize the stock exchange company. Meanwhile, the Securities Board of Nepal (Sebon) has announced that it will take the process of adding another private stock exchange company in the market. Releasing the policy and program for the upcoming fiscal year – FY2019/20, Sebon Chairman Rewat Bahadur Karki said that the process of issuing license to another stock exchange company and strengthening Nepse will move forward.

source: Republica

Corporate News

India makes exemption for Nepal, allows some refined palmolein imports

February 12, 2020- India, which restricted imports of refined palm oil and palmolein in January, has exempted Nepal and has started issuing licences to import some refined palmolein from the Himalayan nation, two government officials told Reuters.

Read more ...

HIDCL, Power China to build 762MW Tamor reservoir project

Kathmandu, September 16- The Hydroelectricity Investment and Development Company Ltd (HIDCL) and state-owned Power China Corporation have jointly submitted a project development proposal at the Investment Board Nepal (IBN) to build the 762-megawatt Tamor reservoir project, which will cover Panchthar, Taplejung, Terhathum and Sankhuwasabha districts.

Read more ...

Security audit of BFIs compulsory

Kathmandu, September 10- Nepal Rastra Bank (NRB) has made it mandatory for banks and financial institutions (BFIs) to conduct an audit of their information and technology (IT) system.

Read more ...

Age limit set for CEOs, directors at BFIs

KATHMANDU: Nepal Rastra Bank has set an age bar for board of directors and chief executive officers of banks and financial institutions (BFIS).

Read more ...
Symbol % Change Last Price Turnover
TPC 10.1449 532.0 1,200,368.0
NBB 10.1227 359.0 78,348,179.0
MKJC 10.0209 527.0 10,408,576.0
NIBLPF 10.0000 11.0 251,978.0
NTC 9.9914 1,277.0 164,339,250.0
Symbol % Change Last Price Turnover
VLBS -2.3669 1,650.0 11,812,950.0
SBIBD86 -2.3415 1,001.0 90,350.0
MLBBL -0.9975 1,985.0 2,583,021.0
NLG -0.9524 936.0 6,741,837.0
PBD85 -0.9288 960.0 72,000.0
Symbol % Change Last Price Turnover
MLBL 9.7333 823.0 372,688,498.0
NHPC 8.9412 463.0 304,219,800.0
API 2.7613 521.0 233,673,436.0
LBBL 1.5152 670.0 182,483,005.0
NTC 9.9914 1,277.0 164,339,250.0