NEPSE suspended 25 Cos for not paying dues

The Nepal Stock Exchange (NEPSE) on Wednesday suspended trading of shares of 25 companies for not paying their annual renewal fees as per the Securities Listing Bylaws 2002.
According to a press release issued by NEPSE, a majority of the defaulters belong to the manufacturing and processing group. The rest include three trading companies,
four finance companies, five development banks, one hotel, one insurance company and one company in the others category.
The shares of most of the suspended companies have not been traded on the secondary market for the last few years. Jyoti Spinning Mill, Butwal Spinning Mill, Arun Banaspati Udyog and Birat Shoe have hardly witnessed trading in recent days. However, shares of Api Finance, IME Financial Institution, Prabhu Finance, Kasthamandp Development Bank, Malika Bikas Bank and Diprox Development Bank were being actively traded on NEPSE.
Shares of Madhyamanchal Grameen Bikas Bank had been suspended since May 25 as promoters of Unity Life International were involved in it. Unity has a 58 percent stake in the bank. NEPSE had initially published a list of 27 companies that had been suspended. Trading in the shares of two of them, Nilgiri Bikas Bank and Goodwill Finance, resumed after they paid their dues. The annual fee charged by NEPSE to be listed on the stock market depends on the company’s paid-up capital. The payment ranges from 0.2 percent of the paid-up capital or Rs. 15,000 to 0.075 percent or Rs. 50,000 per year.
source:ekantipur

Nepse, CMC ink accord for CDS

Himalayan News Service
KATHMANDU: Nepal Stock Exchange (Nepse) and CMC Ltd have signed an agreement today for software development and implementation of Central Depository System (CDS) and Clearing & Settlement System for Nepse.
Nepse General Manager (GM) and Chief Executive Officer (CEO) Shanker Man Singh and Delivery Centre head, Western Region, CMC Ltd C D Despandey signed the agreement on behalf of their respective institutions.
Under the technical assistance for the development of required software, India will extend Rs 80 million assistance.
“The selected vendor CMC will develop, implement and handover the systems to Nepse by the end of January,” Singh said, adding that it would help Nepse establish CDS soon.
Meanwhile, Surbir Paudyal, chairman of Securities Board of Nepal (Sebon) highlighted the importance of risk management in business environment during a two-day workshop ‘Risk management and Board of Directors,’ jointly organised by International Finance Corporation (IFC) — a private wing of the World Bank, Nepse and National Banking Training Institute (NBIT). He also emphasised the importance of risk management under Basel II.
“The effective and efficient implementation of Nepal Rastra Bank (NRB) guidelines on risk management is key to financial health of bank and financial institutions,” he said. The basic objective of the workshop was to enlighten the board members on the significance of risk management in today’s uncertain business environment.
The facilitators introduced various risk management models and techniques to identify and mitigate the various risks such as operational, credit, political, market, and liquidity risk. More than 60 participants from various regulatory bodies, financial institutions, state-owned and family-owned enterprises, insurance, hydropower and manufacturing companies took part in the workshop.
Dr Maxine Garvey, IFC representative, Prof Oliviero Roggi, chair of the International Risk Management Conference and author of ‘Risk and Value’, Prof Torben Anderson, Copenhagen Business School and author of ‘Strategic Risk Management’ spoke on risk management.
Sujit Mundal, CEO of Standard Chartered Bank Nepal highlighted on risk management and the role of board of directors in commercial banks. Shanker Man Sigh, GM and
CEO of Nepse also highlighted the importance of risk management in the changed context of Nepal and the financial institutions. (news source:www.thehimilayantimes.com)