Securities Board of Nepal (Sebon) has approved the issuance of 9,60,000-unit of initial public offerings (IPOs) of Clean Energy Development Bank (CEDB) at the face value of 100 per unit. "NMB is the issue and sales manager for issuance of CEDB's IPOs," states a press release issued here by the regulatory authority of capital market that is going to witness around Rs 2 billion worth IPOs in near future.
Source:
THT
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Saturday, May 31, 2008
Friday, May 30, 2008
NRB directive to check IPO `fake
Better late than never. To check the ‘fake oversubscription' of financial institutions' initial public offerings (IPOs), Nepal Rastra Bank (NRB), the regulatory authority of the financial institutions, has issued a directive for them. The central bank has suspected that the financial institutions are playing foul under its nose taking the advantage of loopholes in the NRB's regulations.
"The financial institutions alongwith the chief operating officer (CEO) personally, will be fined if they fail to maintain the prescribed capital adequacy ratio," Krishna Bahadur Manandhar, acting governor of the central bank, said adding that the CEO will be fined Rs 1,00,000 and the financial institution has to pay interest. "If the financial institution exceeds the resource mobilisation cap, it will also be charged interest on daily basis as a fine," he said. "Those financial institutions that fail to maintain enough capital adequacy ratio — even a single month in a fiscal year — cannot distribute cash dividend and bonus shares at the end of the fiscal year," Manandhar said, adding that it will be applied form October 17.
Recently, public are losing the appetite for IPOs due to various scams in the capital market. Securities Board of Nepal (Sebon), the capital market's regulator, had a month earlier, uncovered a huge IPO scam that involved around eight billion rupees.
The Employment Promotion and Development Bank (EPDB) had received more than 5,00,000 applications amounting to over eight billion rupees, an oversubscribed by 66 per cent. However, the eight billion rupees claimed to be collected was not the real money and the collection of cash did not exceed half-a-billion. Until now, the oversubscribed amount used to be only in the papers not in real cash term, but the central bank is planning to tighten the issue managers as well.
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"The financial institutions alongwith the chief operating officer (CEO) personally, will be fined if they fail to maintain the prescribed capital adequacy ratio," Krishna Bahadur Manandhar, acting governor of the central bank, said adding that the CEO will be fined Rs 1,00,000 and the financial institution has to pay interest. "If the financial institution exceeds the resource mobilisation cap, it will also be charged interest on daily basis as a fine," he said. "Those financial institutions that fail to maintain enough capital adequacy ratio — even a single month in a fiscal year — cannot distribute cash dividend and bonus shares at the end of the fiscal year," Manandhar said, adding that it will be applied form October 17.
Recently, public are losing the appetite for IPOs due to various scams in the capital market. Securities Board of Nepal (Sebon), the capital market's regulator, had a month earlier, uncovered a huge IPO scam that involved around eight billion rupees.
The Employment Promotion and Development Bank (EPDB) had received more than 5,00,000 applications amounting to over eight billion rupees, an oversubscribed by 66 per cent. However, the eight billion rupees claimed to be collected was not the real money and the collection of cash did not exceed half-a-billion. Until now, the oversubscribed amount used to be only in the papers not in real cash term, but the central bank is planning to tighten the issue managers as well.
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Thursday, May 29, 2008
NRB directives to encourage genuine investors
Nepal Rastra Bank (NRB), the central bank of the country, has taken a number of policy decisions to check financial institutions' engagements in manipulation of the share market and to develop a healthy capital market by encouraging genuine investors.
Talking to the media, acting governor of NRB Krishna Bahadur Manandhar said that the central bank recently issued two directives to all licensed financial institutions, asking the financial institutions to maintain capital adequacy ratio (CAR) on a monthly basis and introducing a provision of penalty in case an institution crosses its resource mobilization limit.
Manadhar said that the central bank recently amended its earlier provision of allowing financial institutions to maintain the CAR on a quarterly basis. "As per the new directives, financial institutions are required to maintain the ratio on a monthly basis and will be barred from distributing dividends and bonus shares if they fail to maintain the ratio even in a single month of a fiscal year," he said.
The main purpose of the direction is to plug the huge flow of capital from the financial institution to share subscriptions during initial public offerings (IPOs). Before this, financial institutions, basically finance companies, used to make huge investments in subscription of shares by breaching the CAR for the period between the beginning of a quarter to just before its end. "From now, they will not be able to make such investments as they have to maintain the ratio at the end of each month," he added.
Similarly, NRB has also notified that financial institutions which breach the resource mobilization limit will have to pay a fine on the amount that is more than the permitted limit. "The fine will be equivalent to the central bank's bank rate, that is 6.5 percent, at the movement and will be charged on a daily basis until the total resource mobilization is brought within the limit," he said.
In addition to that, the chief executive officer of the institutions which breach the limitation will be personally made liable and can be fined up to Rs 100,000, he added. Currently, development banks are allowed to mobilize resources 20 times more than their paid up capital and while the limitation for finance companies is fixed at 15 times.
NRB officials also informed that the central bank has recommended the Security Board of Nepal, the regulator of the share market, to arrange a separate account at the central bank to deposit all the money collected while offering IPOs. Such mechanism will force the issue manager to physically show the cash collected during the IPOs, thereby discouraging unaccounted paper transactions.
Source: Ekantipur
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Talking to the media, acting governor of NRB Krishna Bahadur Manandhar said that the central bank recently issued two directives to all licensed financial institutions, asking the financial institutions to maintain capital adequacy ratio (CAR) on a monthly basis and introducing a provision of penalty in case an institution crosses its resource mobilization limit.
Manadhar said that the central bank recently amended its earlier provision of allowing financial institutions to maintain the CAR on a quarterly basis. "As per the new directives, financial institutions are required to maintain the ratio on a monthly basis and will be barred from distributing dividends and bonus shares if they fail to maintain the ratio even in a single month of a fiscal year," he said.
The main purpose of the direction is to plug the huge flow of capital from the financial institution to share subscriptions during initial public offerings (IPOs). Before this, financial institutions, basically finance companies, used to make huge investments in subscription of shares by breaching the CAR for the period between the beginning of a quarter to just before its end. "From now, they will not be able to make such investments as they have to maintain the ratio at the end of each month," he added.
Similarly, NRB has also notified that financial institutions which breach the resource mobilization limit will have to pay a fine on the amount that is more than the permitted limit. "The fine will be equivalent to the central bank's bank rate, that is 6.5 percent, at the movement and will be charged on a daily basis until the total resource mobilization is brought within the limit," he said.
In addition to that, the chief executive officer of the institutions which breach the limitation will be personally made liable and can be fined up to Rs 100,000, he added. Currently, development banks are allowed to mobilize resources 20 times more than their paid up capital and while the limitation for finance companies is fixed at 15 times.
NRB officials also informed that the central bank has recommended the Security Board of Nepal, the regulator of the share market, to arrange a separate account at the central bank to deposit all the money collected while offering IPOs. Such mechanism will force the issue manager to physically show the cash collected during the IPOs, thereby discouraging unaccounted paper transactions.
Source: Ekantipur
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NEPSE to open OTC market
The Nepal Stock Exchange (NEPSE) is going to operate an over-the-counter (OTC) market from next week to allow trading of shares belonging to de-listed companies and others failing to meet listing requirements. The Securities Board of Nepal (SEBON) on Tuesday gave the approval to NEPSE to operate the OTC market.
In a statement, SEBON said all 38 companies that have been delisted would be automatically listed in the OTC market. Absence of an OTC market had been preventing investors in de-listed companies from selling their shares.
"Both infrastructure and human resources are ready to kick-start the market. It will come online next week," said NEPSE general manager Rewat Bahadur Karki. He said the stock market had submitted the OTC Market Regulations to SEBON three years ago for its approval.
In most foreign stock markets, companies having a negative net worth are normally de-listed from the stock market and sent to the OTC market. Market analysts said operation of the OTC market would provide an alternative opportunity for traders. One new investment instrument has entered the market, which will help to advance and promote it, they said.
Meanwhile, NEPSE is unveiling a policy to allow investors to surrender their rights to subscribe to rights shares to a third party. As of now, investors have to purchase the rights shares themselves or the company takes them back.
"This will give investors a chance to gain by selling rights shares to third parties, which they buy at face value," said Karki. He said the related regulations were awaiting SEBON's endorsement.
A total of 142 companies are listed on NEPSE. Market capitalization - the value of the listed shares - amounts to Rs 290 billion.
Source:
Ekantipur
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In a statement, SEBON said all 38 companies that have been delisted would be automatically listed in the OTC market. Absence of an OTC market had been preventing investors in de-listed companies from selling their shares.
"Both infrastructure and human resources are ready to kick-start the market. It will come online next week," said NEPSE general manager Rewat Bahadur Karki. He said the stock market had submitted the OTC Market Regulations to SEBON three years ago for its approval.
In most foreign stock markets, companies having a negative net worth are normally de-listed from the stock market and sent to the OTC market. Market analysts said operation of the OTC market would provide an alternative opportunity for traders. One new investment instrument has entered the market, which will help to advance and promote it, they said.
Meanwhile, NEPSE is unveiling a policy to allow investors to surrender their rights to subscribe to rights shares to a third party. As of now, investors have to purchase the rights shares themselves or the company takes them back.
"This will give investors a chance to gain by selling rights shares to third parties, which they buy at face value," said Karki. He said the related regulations were awaiting SEBON's endorsement.
A total of 142 companies are listed on NEPSE. Market capitalization - the value of the listed shares - amounts to Rs 290 billion.
Source:
Ekantipur
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Tuesday, May 27, 2008
NCC Bank credit limit restriction lifted
Nepal Credit and Commerce Bank Ltd (NCC Bank) has been allowed to disburse loan worth more than Rs 5 million without prior approval of the central bank -Nepal Rastra Bank.
This latest decision in favour of the troubled financial institution comes after NCC Bank raised its paid up capital by floating rights shares in the ratio of 1:1 to its shareholders. The bank's paid-up capital has now increased to Rs 1.4 billion following it issued 7 million rights shares to its shareholders, which have already been listed at Nepal Stock Exchange. NCC Bank is in comfortable position to meet the deadline to raise its paid-up capital to Rs 2 billion by mid-July 2013, states a bank press release here today.
The bank has also earned operating profit of Rs 390 million during the first nine months of the current fiscal year 2007-09. As a result, the bank's capital fund has gone up by six per cent surplus. The bank's new credit limit per client under the capital fund has doubled to Rs 60 million and the credit limit under non-capital fund has been raised to Rs 120 million.
NCC has been providing banking services through 17 branch network using any branch banking system. The bank plans to launch internet banking services soon.
Source: THT
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This latest decision in favour of the troubled financial institution comes after NCC Bank raised its paid up capital by floating rights shares in the ratio of 1:1 to its shareholders. The bank's paid-up capital has now increased to Rs 1.4 billion following it issued 7 million rights shares to its shareholders, which have already been listed at Nepal Stock Exchange. NCC Bank is in comfortable position to meet the deadline to raise its paid-up capital to Rs 2 billion by mid-July 2013, states a bank press release here today.
The bank has also earned operating profit of Rs 390 million during the first nine months of the current fiscal year 2007-09. As a result, the bank's capital fund has gone up by six per cent surplus. The bank's new credit limit per client under the capital fund has doubled to Rs 60 million and the credit limit under non-capital fund has been raised to Rs 120 million.
NCC has been providing banking services through 17 branch network using any branch banking system. The bank plans to launch internet banking services soon.
Source: THT
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Monday, May 26, 2008
Nepal Broker Association heads by new faces
The general meeting of Nepal Broker Association (NBA) has elected, Mr. Nanda Kishwor Mundara(Broker ID 28) as a president for the only one broker association of Nepal. Mr. Mundara is director of Shree Krishna Securities Ltd. The meeting has reformed the management team wherefrom Mrs. Suchita Khanal elected as a vice-president, Arjan Raj Poudel as cheif seceratary, Badri Prasad Phuyal as Treasurer. However, the former president of NBA, Mr. Nawaraj Pokharel including Ishori Prasad Rimal and Parmeshwor Bhakta Malla walk out from the management team and resides as an advisor only.
Nepal Broker Association(NBA) Members
Mr. Nanda kishwor Mundara- President
Mrs. Suchita kahnal- Vice-president
Mr. Arjan Raj Poudel- Cheif Secretary
Mr. Badri Prasad Phuyal- Treasurer
Mr. Rabindra Nuchhe Pradhan- Member
Mr. Megh Nath Upadhaya- Member
Mr. Umesh Regmi- Member
Mr. Manoj Agrawal- Member
Mr. Nitesh Agrawal- Member
Mr. Nawaraj Pokharel- Advisor
Mr. Ishwori Pd. Rimal - Advisor
Mr. Parmeshwor Bhakta Malla - Advisor
Source:
Jamb News Service
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Nepal Broker Association(NBA) Members
Mr. Nanda kishwor Mundara- President
Mrs. Suchita kahnal- Vice-president
Mr. Arjan Raj Poudel- Cheif Secretary
Mr. Badri Prasad Phuyal- Treasurer
Mr. Rabindra Nuchhe Pradhan- Member
Mr. Megh Nath Upadhaya- Member
Mr. Umesh Regmi- Member
Mr. Manoj Agrawal- Member
Mr. Nitesh Agrawal- Member
Mr. Nawaraj Pokharel- Advisor
Mr. Ishwori Pd. Rimal - Advisor
Mr. Parmeshwor Bhakta Malla - Advisor
Source:
Jamb News Service
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KMBF New Scheme
Kist Merchant Banking and Finance Ltd (KMBFL) has re-launched its `Kist Bonus Saving Scheme' at its New Road and Sukedhara branches from today. KMBFL plans to add 5000 more customers through this scheme, which was first introduced on January 3. More than 10000 customers had participated in the first phase, states a press release today. Under this scheme, one can open accounts with just a Re 1 and KMBFL will give Rs 100 bonus and free cheque book and Kist SSB debit card.
Source: THT
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Source: THT
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Right Share issue: IDBL
Infrastructure Development Bank Ltd. is issuing its right share in the ratio 1:3. According to the special general meeting held on 24th May, the company is issuing the right share in order to increase its share capital to 32 million. Around 24 million worth right share is on the way of issuance. Priyaraj Regmi and Bikash Babu Baniya are elected as the representatives on the behalf of general shareholders. In the fiscal year 2063/64, the operating profit of the company was Rs.190.20 million which has increased by Rs. 30.50 million in the last 10 months. IDBL started its operation from 16 Baisakh 2061.
Source:
Jamb News Service
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Source:
Jamb News Service
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Sunday, May 25, 2008
DCBL now "A" grade commercial bank
Development Credit Bank Ltd. is upgraded from 'B' category financial institution to "A" grade commercial bank. It has commenced its commercial banking activities from this Sunday (25th May 2008). The paid up capital of this company is Rs. 1.107 billion. DCBL is the first organisation being upgraded from "B" class development bank to "A" grade commercial bank. DCBL was established in 2001 as first national level development bank fully owned by private sector.
Source:
Jamb News Service
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Source:
Jamb News Service
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Share trading through WAN to be mandatory
Starting form the Nepali New Year, all 23 brokers will trade from their offices through Wide Area Network (WAN), an extended facility that Nepal Stock Exchange (Nepse) provide them. They don't need to go to the floor everyday from Bai-shakh 1 for trading as Nepse is making it mandatory for all the brokers to trade through WAN. Nepse has provided the extended facility of WAN from this fiscal year after the stock market automation. At present 20, out of the total 23 brokers trade through WAN from their offices. Nepse has written a letter on Sunday to the remaining three brokers to go for WAN from the begining of Nepali New Year. Baishakh 1, the Nepali New year day falls on April 13 this year. However, April 13 and 14 are holidays and the brokers will trade through WAN from April 15. "We wrote them on Sunday to go for WAN," Rewat Bahadur Karki, general manager and CEO of Nepse, said, adding that it wrote a letter to Broker no 7, 13 and 26 ¿ to start trading through WAN. Nepse will also add 27 more brokers ¿ to make it a total of 50 from existing 23 ¿ after the Constituent Assembly poll. With the increasing of the listed companies and volume of shares the existing brokers are not enough, claims Suman Parajuli, an investor. "Nepse must add more brokers so that it will be easier for the investors to trade," he said, adding that at present out of 23 only around 10 brokers are active. The new companies ¿ three big commercial banks ¿ are floating Initial Public Offerings (IPOs), the existing companies are issuing rights and bonus shares pushing the volume and transaction up. "Similarly, NT recently has its mega-issue," he said. Thus, the number of brokers should also be increased. "The best practice would be open-entry and open-exit." The Security Board of Nepal has registered capital mobilisation of Rs 4.05 billion by 20 different companies in the first six months of the current fiscal year. Eight of the companies have issued ordinary shares worth Rs 1.77 billion and 12 have issued rights shares worth Rs 2.28 billion.
Source: THT
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Source: THT
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