Nepse starts separate trading of promoters' shares

Nepal Stock Exchange (Nepse) started separate trading of promoters' shares through secondary market from today. Alpic Everest Finance Ltd and Machhapuchhre Bank became the first two listed companies today to trade as Alpic Everest traded its 1,28,000 units shares for Rs 12.58 million and Machhapuchhre Bank traded 2,51,410 units of its shares for Rs 125.7 million. "With this new practice, the capital market will be dynamic and price of the ordinary shares will also be stabilised as the supply of shares will increase," Rewat Bahadur Karki, general manager and CEO of Nepse said, adding that the capital market has been on fire due to less supply of the shares. "The trading of promoters' shares helps expand the market," he added. "It will also help check manipulation." However, the promoters cannot fix the price of shares arbitrarily. "For the first trading at the floor, the lower limit is fixed," Karki informed. "In case of a company that has positive networth, the price cannot be less than five times of the networth or the current market price, whichever is low." This pricing system is expected to be beneficial for the traders. A promoter cannot sell shares worth more than two percent of the paid up capital ¿ at a time.

Source: THT