Share Allotment of Reliable Investment Bittiya Sanstha

Shares of Reliable Investment Bittiya Sanstha has been allotted. You can access the allotment information here
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Sanima Bikash Bank to give right share

The Board of Director's meeting of Sanima Bikash Bank Ltd. held on 22nd September 2008 (2065 Ashwin 6) decided to propose 1:1 right share on the upcoming AGM on approval of Nepal Rastra Bank. Investors have high expectation from SBBL as its PE ratio is high and is likely to generate good income. Sanima is regularly chucking new schemes and products in the market. It was established in 2004 by the enterprising and dynamic Non Resident Nepalese (NRN) with a vision to mobilize required resources for the national development process.
Source: Jamb News Service
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Laxmi Bank Limited's 14th branch

Laxmi Bank Limited opened a 14th branch at Bhatbhateni here on Sunday. A bank press statement said the branch will offer personal banking and also safe deposit lockers aside from various financial solutions. Laxmi Bank's Kathmandu network has branches at Hattisar, Pulchowk, New Road, Teku and New Baneshwor.
Source: THT
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Goodwill Finance proposes right and bonus Share

The Board of Director's (BOD) meeting of the company held on 21st September 2008 (2065 Ashwin 5) decided to propose 1:1.5 right share and 10% Bonus Share on the upcoming AGM on approval of Nepal Rastra Bank. GFCL has posted Rs. 13.2 million profit for the 4th quarter of fiscal year 2064/65 which is almost 25% more than the corresponding previous quarter. It started its operation from 2nd Jestha, 2052. Goodwill Finance and Investment Company Ltd. was converted into Goodwill Finance Company Ltd. in 7th annual general meeting and was accepted by HMG industrial corporation Company Registrar Office in 2059/7/15 and came into operation in 2059/8/2.
Source: Jamb News Service
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Budget based on 'controlled economy' concept: FNCCI

The umbrella body of private sector, the Federation of Nepali Chamber of Commerce and Industries (FNCCI), has accused that the budget is based on the concept of 'controlled economy.'

"Even though the budget raises the subject of liberal economy, it is based on the concept of controlled economy. It has not created private sector-friendly environment. Although it embraces the concept of public-private partnership, it does not encourage the private sector through competition," reads a statement issued by the FNCCI in response to the budget.

"Instead of introducing additional commitments to liberal economy to mobilize domestic and foreign capital, the government is creating a holding company to revive the sick industries rather than hand them over for privatization. This cannot be called as a policy conducive for industrialization," adds the statement.

In a statement issued Monday, FNCCI said though many suggestions put forward by the organisation have been incorporated in the budget, the government still intends to increase its presence in the business sector by resuming its hold on public companies which were in the process of privatisation.

FNCCI expressed dissatisfaction for not addressing its demand to stabilize taxes at least for next one decade, and the failure of the government to implement multi-rate tax regime apropos the Value Added Tax.

The FNCCI has demanded its representation in the proposed Central Revenue Board and called for building of infrastructure for Special Economic Zones (SEZs), which have remained on papers despite repeated commitments from the government.

FNCCI further accused the government of not acting appropriately on downsizing the imports by encouraging active involvement of the private sector. It said the budget has not addressed the grievances of the industrialists hit by the Koshi havoc.

FNCCI sought support from the government to uplift the industries who were affected by the decade long insurgency due to which they failed to pay back government loans on time.

However, talking to reporters on the evening of the budget speech FNCCI chairman Kush Kumar Joshi had said the budget had address most of the demands put forward by the private sector.
Source: Nepalnews
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Oriental Hotels profit Rs 23.4m

Oriental Hotels has announced that its net profit for the last fiscal year soared to Rs 23.40 million, which was a 542 percent rise compared to the profit recorded a year before. Presenting the financial performances of the hotels, its chairman Govinda Das Shrestha said that Oriental Hotels recorded an average occupancy of 75.67 percent in 2007/08 and charged an average tariff of Rs 3,605 per room during the period. The hotels' income for the year shot up to Rs 385.10 million, says a press release.
Source: eKantipur
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Premier Insurance's Bonus Share Certificate Distribution

Premier Insurance Co. Ltd. is distributing its bonus share certificate from 24th September 2008 (2065 Ashwin 8) in the given schedule.
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NTC to divest remaining shares through NEPSE directly

As a part of divestment and privatisation plan, the government had started selling NT's 10 per cent shares to public through an auction. It had already sold five per cent to the Telecom's employees at the subsidised rate of Rs 90 per unit. All in all, 8200000 shares have enlistment in Nepal Stock exchange. The shares of NTC were decided to be sold at Rs. 600, but some investors even paid Rs. 2500 for a single share. After discovering new height of Rs. 1481 as on 1st Sep 2008 within a short span of time in its trading history, Eventually, the share price had plunged down to make a lowest life-time low of Rs. 800 as on 16th sep 2008. Information volatility is expected to gain extra momentum as per the budget approved for fiscal year 2008-09 Dr. Bhattarai stated that, with regard to 10 percent share of Nepal Telecom set aside for sale, the remaining share will be sold through secondary market.
Source: Jamb News Service
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Hydropower next biggest priority

Hydropower sector has been given second top priority after agriculture this fiscal year with Finance Minister Dr Baburam Bhattarai allocating Rs 12.69 billion to this sector —13 percent more than the revised expenditure last year. A high-level power sector development committee under the chairmanship of Prime Minister Pushpa Kamal Dahal ‘Prachanda' will be set up to realise the objectives of producing and utilizing 10,000 MW hydropower in the next 10 years. It has also envisaged developing a 40-year national energy security policy based on national consensus.

The construction of run-of-the-river type projects, namely Upper Tamakoshi-456 MW, Upper Trishuli A-60 MW, Rahughat-30 MW and Naumure-245 MW, totaling 791 MW, will start this year. Likewise, work will be initiated to start construction of Upper Trishuli 3B-40 MW, Tamor-Mewa-110 MW, Upper Seti-127 MW, Dudhkoshi-300 MW, Tamakoshi 2 and 3-500 MW, West Seti-750 MW. These projects will generate a total of 1827 MW. However, the budget is silent when they will come into operation.

The budget has also discouraged the tendency of holding licence of power plants which have not been constructed even after reaching power purchase agreement with Nepal Electricity Authority.

To lure the private sector into the hydropower sector, the budget has exempted the provision of taking permission for a power plant generating up to 3 MW of electricity. Earlier, the ceiling for this was up to one MW. It has also said a power plant generating energy up to 50 MW of electricity would not need to carry out environment impact assessment (EIA) study. Commenting on policies for water resources, a water resources expert said the provision of no licence for generation of up to 3 MW power plant would lead to "anarchy" in the absence of a regulatory body.

The water resources development committee within the concerned district should have been authorized to issue the licence to simplify the licencing process, he said and added that scotching the provision of carrying out EIA study on up to 50 MW projects would have a serious impact on the environment.
Source: THT
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Budget emphasis on infrastructure developments

Laying heavy emphasis on infrastructure development, the government has substantially increased allocation for agriculture, hydropower and road-construction in the budget for Fiscal Year 2008/09. Presenting the budget in the Legislature-Parliament on Friday, Finance Minister Dr. Babu Ram Bhattarai also announced some ambitious plans for hydropower development and improvement in agricultural productivity, aimed at ensuring food security.

Social security for needy groups: The government has increased social security expenditure by 440 percent to Rs 4.41 billion this year to provide relief to needy citizens. Considering the sharp rise in prices in the last few years, the government has increased monthly social security support for senior citizens, single women and physically handicapped people from Rs 175 to Rs 500, effective from Sept. 17, 2008. It has also lowered the age threshold for providing the social security allowance to 60 years from 75 years. Monthly Rs 500 has also been arranged for all age groups of fast disappearing ethnic groups. A monthly support of Rs 1,000 for fully handicapped and disabled, and Rs 300 for partially handicapped and disabled has also been proposed under the social security scheme.

Expansion of free education: The government has allocated Rs 38.98 billion for education, which is a 44. 5 percent rise over the revised expenditure of the last fiscal year. "Education for up to Class 8 will be made free from the current fiscal year and gradually be extended for up to Class 10," said Dr Bhattarai. All school-level students of Karnali Zone have been promised free education. The privilege will be extended for students of up to Class 12 in the public school system for all Dalit students across the nation, says the budget. It also says that a national literacy campaign will be launched in each ward of each VDC across the country mobilizing 35,000 youths. The government also vowed to end illiteracy by the end of the next fiscal year.

Health: Increasing the budget by 53.92 percent over the revised expenditure of the last fiscal year, the government has allocated Rs 15.58 billion to the health sector for Fiscal Year 2008/09. It plans to expand free medicine facilities to the level of district hospitals from the existing sub-health post and health post levels. In what may be termed as good news for poor heart patients, the government has announced that it will provide free of cost operation services at Shahid Gangalal Heart Center to children below the age of 15 and senior citizens above the age of 75 and also to all endangered ethnic groups.

Ambitious hydropower development plan: The government has made a huge allocation of Rs 12.69 billion for the development of hydropower. The amount is an increase of 113 percent, compared to the revised expenditure of the last fiscal year. To speed up the growth of this sector and realize the goal of producing 10,000 MW of electricity in the next 10 years, Finance Minister Dr. Bhattarai proposed establishment of a high-level Power Sector Development Committee under the Chairmanship of the Prime Minister. "Special emphasis has also been given to rural electrification by allocating Rs 1.52 billion to the small hydropower projects," said he. He further announced that developers would not need license from the government to develop hydropower projects of up to 3 MW. Such a facility was previously granted to projects of up to 1 MW capacity.

Roads: The government has allocated Rs 13.91 billion, which is a 77 percent rise over the last fiscal year's revised expenditure. "This year will be the year of construction," said Dr. Bhattarai, who announced that the government would construct 1,805 km of new roads and carry out maintenance work on 4170 km of the existing roads during the current fiscal year. He further said 325 small bridges, 250 suspension bridges and 6 motorable bridges would also be built during the year.

Agriculture: Aiming to bring about rapid transformation in the agriculture sector through commercialization and mechanization of agriculture, the government has increased agriculture budget to Rs 5.91 billion, which is 69.3 percent more than last year's revised expenditure. It has allocated Rs 1.25 billion to provide immediate relief to the people suffering from food crisis and to help farmers increase food production. "Cooperatives in Every Village, Food Storage in Every House campaign will be launched," said Dr. Bhattarai. He said 2,275 additional small irrigation projects would also be implemented on the basis of cooperatives and group models.

Emphasis on Irrigation: The government has set aside Rs 5.8 billion for large and medium irrigation projects in Tarai and hilly areas in a bid to increase productivity through round-the-year and reliable irrigation facilities. The allocation is an increment of 42.60 percent compared to the revised estimate of the last fiscal year. The government also plans to extend irrigation by completing and reconstructing 101 projects, installing 32 new deep tube-wells and 7,600 shallow tube-wells in Tarai in the current fiscal year. "Irrigation facilities will be increased to additional 900 hectares of land with the completion of 72 new technology-based irrigation projects in 38 districts of the hills and mountains. Additional 112 projects will be initiated in 55 districts," said Dr. Bhattarai.

Tourism and Aviation: With the objective of reviving the tourism sector, the government announced to mark 2011 as 'Nepal Tourism Year'. Dr. Bhattarai further said that the government would extend its guarantee to Nepal Airlines Corporation to arrange the purchase of two wide-bodied aircraft. He also promised to develop tourism related infrastructures. The government has allocated Rs 950 million for the aviation sector.
Source: eKantipur
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Budget bids to up revenue Industrialists, middle class anxious

The new budget of the CPN Maoist-led government announced Friday has landed the axe on the urban middleclass by introducing new taxes on basic services like health and education, among others. It has also delivered little by way of boosting rural consumption.

Finance Minister Dr. Babu Ram Bhattarai, who vowed to make the budget private sector and investor friendly, lowered duty on raw material imports and exempted all hydropower projects from VAT in an attempt to support industries and lure investments.

But he also caused anxiety for the private sector by demanding that they declare their property voluntarily within four months (by mid-February) or see those confiscated.

"People will also need to disclose their income while buying house, land and vehicles above certain limits," said Bhattarai, presenting the budget for 2008/09 in the Legislature-Parliament. He did not specify the limit, but added that the government would update the existing Property Tax Act 1990 to increase revenue.

"It (budget) is very confusing and has made us anxious." Kush Kumar Joshi, president of Federation of Nepalese Chambers of Commerce and Industry (FNCCI) reacted to the budget.

Reeling under pressure to realize more revenue to finance an inflated budget, Dr. Bhattarai introduced 5 percent Health Service Tax and Education Tax on fees charged by private health service providers and education institutions.

He also increased rental tax to 10 percent and introduced pollution tax of 50 paisa on every liter of petrol and diesel sold in Kathmandu Valley.

The new budget has also increased registration fee on land transactions by 0.5 percent in the Valley. The collection, says the budget, will be used to cultivate Bagmati Civilization - a concept which has been pushed in the budget to improve the outlook of the Valley.

The government has also increased duty on vehicles, which present day professionals prefer to relate to productivity. Dr. Bhattarai justified the raise saying, there are too many vehicles on Kathmandu roads and traffic congestion has escalated.

As usual, he also raised import duty and excise on liquor, cigarette and other tobacco products.

In a bid to cheer up industrialists, Finance Minister Dr. Bhattarai lowered import duty on raw materials. The budget has also reduced duty on palm oil, packing materials, soya bean and sunflower.

He also pledged 10 percent discount on income tax to industries permanently employing 500 or more Nepali nationals.

"Special service charge of 1.5 percent imposed on income tax has been scrapped. I believe this will lessen the burden on taxpayers and relieve them," said Dr. Bhattarai.

The budget has also brought down duty on 131 items to zero, in order to comply with regional free trade agreements and international commitments. "However, excise duty on some of them has been raised to compensate revenue loss," it says.

Moreover, the government has proposed introduction of shift system to extend service to 24 hours at customs offices.

To promote rural savings, the budget has pledged 10 percent discount on tax imposed on interest income of savings up to 10,000 deposited in micro-finance institutions, rural development banks, postal saving bank and rural cooperatives, among others.

Apart from change in tax structure, the new budget has also announced changes in revenue policy. It has proposed constitution of a new Money Laundering Department within this fiscal year.

"A permanent Central Revenue Board will be formed to oversee revenue operations in a coordinated way," says the budget, which further states that a task force will also be formed to demarcate the extent of revenue collection for the centre and the local government.

In a major change, the new government has scrapped the existing fixed structure of revenue services and announced that it will interchange officials from postal as well as administration services with revenue officials whenever necessary.

It has also proposed establishment of 'Border Security and Revenue Leakage Control Patrol' posts and active flying squads to check revenue leakage.

Likewise, it has announced that import consignments from four major customs offices - Birgunj, Bhairahawa, Biratnagar and Mechi - will be allowed to move in sealed containers only. The new system will be put in place in six months, says the budget.

Source: eKantipur
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Budget from Experts eye

Dr Ram Sharan Mahat
Former Finance Minister

I call it a pork barrel budget. It's blown up like a balloon and has crossed the limit of financial indiscipline. It is not a growth-oriented budget. It is oriented toward consumption and distribution. The budget can cause financial anarchy as it lacks focus and is unsustainable. All the revenue projections are grossly exaggerated and impractical. It will lead to high deficit and inflation. This transitional budget has piled up huge liabilities on any future government. This government's talk of opening cooperatives smacks of the Panchayat era where the government would open Sajha to cater to the needs of the people. I do not see any programmes to encourage private industries.

Dr Jagdish Chandra Pokharel
Former vice-chairman, National Planning Commission

The budget is quite bold, although there are innate problems. It will face challenges in both raising revenue as well as in spending on development. Last year, the government was able to spend only about Rs 42 billion on development. It will be easier to spend on relief and welfare, but capital expenditures that require fulfillment of due procedures will be difficult. Villages that have less capacity and less resources will be affected. There is also doubt about the macroeconomic implications of such a large budget. We doubt that inflation will be limited to 7.5 percent. The major departure is on social security, especially for people in remote areas like Karnali. The government has also taken bold steps like providing 0.5 percent of property transaction fees to Bagmati civilization. That's a good idea. It has also shown commitment in controlling substances like tobacco and alcohol. The rest is mostly continuity of previous policies. However, we should try to see the bigger picture by linking the budget with the government's policies and programmes. Although most of the programmes appear to be the continuity of previous regimes, we should try to understand why the new government is talking about a break with continuity. It is talking about break in continuity in relation to the role of the government and political parties in the developmentprocess. It has rearranged statistical evidence to make a different historical assessment and draw a different conclusion. We are only seeing the preliminary building blocks of the Maoist policies. They are likely to lead the country towards greater role of the state and greater involvement of political parties in the development process. They don't trust the bureaucracy and believe that the political machinery must be engaged. This is what they mean by a break with tradition. Dr Shanker Sharma Former vice-chairman, National Planning Commission

The new budget is really over-ambitious and there is too much over-programming. I think, in terms of priority to sectors, nothing was missed out. The budget has also mentioned increasing foreign aid by 100 per cent — a factor which would be certain to increase dependence on donors. It is a glaring example of over-programming." While cautiously praising the experimental budget Dr Sharma said, "The budget's inclusion of cooperatives, infrastructure development and youth development programmes' implementation is quite appreciable. He also pointed out that The budget has also said that Nepal Airlines Cooperation (NAC) in collaboration with the government will increase the size of its fleet.

Dr Sharma said, "This is the same budget which was ineffective in the earlier days and it is being repeated. The new budget seems to have included nearly all sectors, but I think it won't be sustainable and its effect can easily been predicted from the very next year. In the context of Nepal, resource mobilisation is difficult and foreign aid also cannot be utilized." He warned that revenue would not reach higher than Rs 10-11 billion and added that at least Rs 2-4 billion would be overdraft and thus raise inflation.

Dr Dilli Raj Khanal
Economist

In my opinion, it's a good try to take the budget in a new manner. There is the inclusion of many sectors in the new budget and in the near future the outcome can be very serious if it does not fulfil expectations accordingly. It has created new hopes for many sectors which were ignored for years. The budget has generated expectations among the people in general but unless and until the genuine framework that I made regarding the budget is implemented it may disappoint the people. The revenue section of the budget was somewhat satisfying, but I feel that if it were to fail in the long run it will create frustration. Simply put, the budget is over-ambitious.

Dr Bishwamber Pyakurel Economist

The budget has included every sector, and I think it was designed in a way that it might be implemented successfully. The budget allocations will be scattered in different sectors and this will have short-term benefit as the state's mechanism cannot expand the allotted budget. Expansion allocation by revenue is over-ambitious and I think Rs 30-32 billion cannot be invested in Nepal.

The budget itself was declared two months late and it will take a lengthy interval to reach the assigned villages, which is alarming. It is nice to hear the new budget has touched many such sectors which were not getting right notification earlier, like Health, Employment and Hydropower. This shows the good aspect of the budget but as a whole it is an expansionist budget. It has another good aspect in that it has targeted disabled people and aimed at prolonging their life expectancy. The budget has large amount for the villages but if the allotted amount doesn't get invested there, it will be no use.

In comparison to the previous budget, this one is more expansionist. The Finance Minister has said that Nepal Rastra Bank will bring a new monetary policy but I think even it cannot make perfect money allocation.

Truly speaking, the new budget is quite expansionist and it might result in inflation.
Source: THT
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Govt unveils Rs 236 billion budget: Capital gain tax increases to 15 %

Finance Minister Dr Baburam Bhattarai has unveiled a whooping budget of Rs. 236.15 for the fiscal year 2008-09 Friday.

Out of the total expenditure, recurrent expenditure is estimated as Rs. 128 billion 516.5 million, capital expenditure Rs. 91 billion 311 million and principal payment Rs. 16 billion 189.3 million.

This expenditure estimate is higher by 39.7 percent against the total allocation of Fiscal Year 2007/08 and 44.5 percent more than the revised expenditure. On the recurrent expenditure side, it increased by 40.6 percent and on the capital expenditure side, by 64.5 percent to the revised expenditure. The principal payment has been lowered by 1 percent against the revised expenditure.

Out of the total expenditure, Finance Minister Dr Baburam Bhattarai has proposed Rs.111 billion 824.9 million (47.38 percent) for general administration and Rs. 124 billion 199 million (52.62 percent) for development related programs.

For several years in the past, the government has substantially increased the general expenditure, which the new government gave continuity.

Addressing the constituent assembly session today, FM Bhattarai said government has given topmost priority to agriculture, water resources and tourism.

From the implementation of the proposed budget, government estimates that the Gross Domestic Product growth rate would remain at 7 percent at the end of current Fiscal Year. The growth rate in agriculture sector is expected to be at 4.5 percent and non agriculture sector at 8.3 percent. Inflation rate is estimated to be around 7.5 percent.

Likewise, Dr. Bhattarai stated that the remaining 5 percent of NTC shares will be sold through secondary market. Similarly, the prevailing Capital Gain Tax on listed securities transactions has been ammended from 10% to 15% both for individual & institutional investor by the finance bill announced for F/Y 2065/66. From this statement, stock market is expected to plunged down in coming week.
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Double digit growth after two years

Finance Minister Dr Baburam Bhattarai, who has been speaking plenty about double-digit growth, Thursday said that people will need to wait for two years to see the country attain this goal.

Unveiling a white paper on the state of economy on the eve of the budget, he said that the government will not be able to fulfill all of people's aspirations, as it has inherited a very weak economy.

"The budget will spur hope, but the hope should be pragmatic - firmly match the ground realities," he told journalists. Dr Bhattarai elaborated that the budget will focus mainly on providing relief to conflict hit people, driving the country into higher growth trajectory and attaining fair distribution of resources and income.

Though agriculture, infrastructure, health and education will be major areas of public investment, the budget will rate hydropower and tourism high on its priority, he added.

Dr Bhattarai indicated that the new government might not continue the past ones' privatization policy. "We will activate public enterprises, then issue their shares to people and employees, and run them under the public-private partnership modality," he said.

He reaffirmed the past governments' actions to deal with loan defaulters stringently. But at the same time, he tagged banks as 'parasites'. "Banks have completely ignored the real sector and focused only on serving able groups. This situation must be corrected," he stated.

Apart from flaying past policies and programs, the finance minister also laid down the Maoist-led government's roadmap for putting the country into higher growth trajectory. "The first two years will be a period for planning and preparations," the white paper said.

During this period, the government will adopt strategies to attract substantial foreign investment in special economic zones (SEZs) and push up economic growth by two percentage points compared to the previous year. In 2007/08, the economy had grown by 5.6 percent.

The next five years after that would be the medium development period, when the economy would grow by double-digits, said Dr Bhattarai, adding that a decade after that will be the takeoff period, when the country will go through massive socio-economic transformations.

"We want to attain it (double digit growth) now, but we can't because of faulty policy of past governments, weak implementation and poor governance," he added.

Dr Bhattarai emphasized that poverty and unemployment were the two major challenges that the present government faced. He also cited income disparity, downturn in manufacturing, decline in exports, rising trade dependency on India and growing aid dependency as his main concerns.
Source: eKantipur
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Budget targets agriculture, hydropower, tourism

The government has increased development expenditure in the budget for Fiscal Year 2008/09 in a bid to achieve a 7 percent growth, Finance Minister Dr Babu Ram Bhattarai said Thursday. Bhattarai mentioned agriculture, hydropower and tourism as the major sectors to power the economy to achieve the targeted growth rate this year.

"We have set a target of 7 percent growth for this year. It will not be difficult to achieve double-digit growth if we commercialize agriculture, encourage massive investment in hydropower and develop tourism infrastructure," Bhattarai said at an interaction with representatives of different political parties on the budget to be presented Friday.

Bhattarai said attracting domestic and foreign investment, increasing investment in education, health and human resource and focusing on industrial development were also high on the agenda to accelerate economic growth.

"There will be a rise in non-development expenditure due to relief programs to be carried out for the people, but development expenditure will be much higher compared to last year's budget," Bhattarai said.

He added that the government was going to expand the tax net and include a larger number of traders instead of increasing the tax rate to collect more revenue.

He also said that the size of the budget has increased as it contains more relief and reconstruction programs for the benefit of people.

The programs in the budget were fixed keeping in view the ongoing peace process, the three-year interim plan and the constitution making process, he added.

"We have made an attempt in the budget to reduce disparity among people and lessen dependency," said Bhattarai.
Source: eKantipur
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DCBL Subhalabha

Development Credit Bank Ltd (DCBL) has introduced Subhalabha premium savings that attracts 6.75 per cent interest. "A customer of this account will get a free debit card and no commission will be charged on buying of travellers' cheque," said a press release.
Source: THT
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Sebon makes bank account mandatory

Securities Board of Nepal (Sebon) has laid down a new rule from today that a applicant applying for the Initial Public Offering (IPO) must have a bank account. It has taken this step to boost investors' confidence and make matters transparent.

"It will help screen out fake applicants," said Dr Chiranjivi Nepal, chairman of Sebon, the regulatory authority of the capital market. People have been complaining to the regulatory authority about fake applicants since long. The board had earlier made it mandatory for any applicant applying above Rs 10,000 worth IPOs to have a bank account. Still, the board kept receiving complaints about fake applicants applying for IPOs using others' citizenship certificates or photocopies of these.

"To discourage such swindlers, the board has brough the new rule where any applicant applying for the IPO has to have an account," Nepal added. Almost all financial institutions have share investment accounts — targetting the IPO applicants — due to the board's new regulation. The regulation has checked the spate of fake applicants and the prospect of real applicants getting the shares is better now. Since some time, Sebon has become more vigilant in order to protect investors' interests. Last month, it suspended Shilpa Securities Pvt Ltd (broker No. 20) on the charge of giving false information.

The regulator must now make all listed companies more transparent — such as financial institutions — so that investors can know the real status of the company before investing their money in them.
Source: The Himalayan Times
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Laxmi Bank to give dividend and right shares

The Board of Directors (BOD) meeting of the Laxmi Bank Ltd. held on 17th September 2008 (2065 Ashwin 01) decided to distribute 20% Bonus Share and 40% Right Share. Recently published unaudited fourth quarter financial report of the company revealed Rs. 120.759 million net profit which is 84% more than the previous quarter. The bank issued the right shares just three months ago and has again proposed for the same.
Source: Jamb News Service
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Nepal ranked 128th in economic freedom

An international report has ranked Nepal in the 128th position, way behind neighbors India and China, in the latest ranking of global economic freedom.

The ‘Economic Freedom of the World: 2008 Annual Report' by Canada's Fraser Institute and Washington DC based Cato Institute, released Tuesday says Nepal scored 5.35 out of 10 in terms of economic freedom, pushing its position further down from the 123rd spot it had occupied last year.

The report ranks 141 countries on a range of factors including size of the government, legal structure and security of property rights, access to sound money, freedom to trade internationally and regulation of credit, labor and business.

The research suggests Nepal's scores improved on the size of the government compared to the last year, but dipped on legal structures and security of property rights.

Likewise, its scores on access to sound money dropped along with regulation of credit, labor and business, whereas it scored better this year in terms of freedom to trade internationally.

According to a press release, the report has ranked India 77th and China 93rd while Sri Lanka is ranked 103rd just ahead of Pakistan.

In 2008, the report has rated Hong Kong as the freest economy, followed by Singapore, New Zealand, Switzerland and the United Kingdom respectively.
Source: eKantipur
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Rastriya Banijya Bank introduces builder loan

Aiming to tap the boom in the construction sector, Rastriya Banijya Bank (RBB) has introduced Builders' Loan, a scheme targeting construction contractors, builders and real estate developers. Issuing a statement, the state-owned bank said that the Builders' Loan scheme offers a unique basket of loan products, including bank guarantee, equipment loan, vehicle loan, pledge loan, revolving overdraft, term loan trust receipt hypothecation loan and letter of credit, among others.
Source: eKantipur
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UFL's new scheme

United Finance Ltd (UFL) has brought two schemes: Plot The Lot for Real Estate Developers and Share Investment Accounts. A customer can repay loan after his/her plot is sold, said a press release. Share Investment Account attracts seven per cent interest and will fetch 0.5 per cent discount on interest of loan against shares. The account holder will also get shares sales and purchase services also.
Source: The Himalayan Times
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Sanima's new facility

Sanima Bikas Bank Ltd (Sanima) has introduced a customised deposit product ‘Sanima Samay Bachat Khata' targeted at share investors on initial public offerings (IPOs). "An account may be opened with a balance as low as Rs 100," said a press release. It will attract five per cent interest rate per annum on monthly minimum balance. The customer will get a free cheque book and account statement and information related to shares through SMS/e-mail.
Source: The Himalayan Times
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Bank of Kathmandu (BoK) bonus, dividend

Bank of Kathmandu (BoK) has posted a net profit of Rs 361.5 million for the fiscal year 2007-08 — a growth of 37.77 per cent in comparison to the last fiscal year. The 306th board meeting of the bank on Wednesday decided to propose the bonus share @ 40 per cent and cash dividend @ 2.11 per cent to shareholders from the profit, subject to NRB approval. "The bank has increased its deposits by 27.8 per cent and loans and advances by 32.6 per cent, compared to last fiscal year," said a press release. It also reduced non-performing loans to 1.86 per cent.
Source: The Himalayan Times
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Bonus Share of Sahayogi Bikas Bank

Sahayogi Bikas Bank Ltd. has decided to distribute 20% bonus share on approval of Nepal Rastra Bank.The Board of Director (BOD) meeting held on 10th September 2008 (2065 Bhadra 25) decided on the matter. SBBLJ has recently published its financial report posting Rs. 6.266 million profit for the 4th quarter of fiscal year 2064/65 which is almost 85% more than the corresponding previous quarter.
Source: Jamb News Service
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Clean Energy enters 3rd year of operation

Clean Energy Development Bank entered the third year of operation this week. To mark the occasion, the bank organized a blood donation program at its head office in Sitapaila. Issuing a press release, the bank said it would be opening new branches inside and outside the Kathmandu Valley in the near future to strengthen its presence in the market. The bank currently has branches in Birtamod, Jhapa and Drubar Marg, Kathmandu. The release states that the bank mobilized deposits of Rs 1.83 billion, issued loans of Rs 1.50 billion and earned a profit of Rs 13.90 million in Fiscal Year 2007/08.
Source: eKantipur
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Central Finance opens new branch

Central Finance Limited opened a new branch in Chabahil this week. Issuing a press release on the occasion, the company said that it posted an operating profit of Rs 43.44 million in Fiscal Year 2007/08, a 67 percent growth over the previous year's figures. The Central Finance has a paid up capital of Rs 89.70 million and extends facilities whereby the customers can open accounts at zero balance. It provides seven percent interest per annum on general savings and nine on fixed deposits.
Source: eKantipur
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New Bank of Asia Nepal branches

Bank of Asia Nepal (BoAN), inaugurated its seventh branch at Banepa and the eighth at Surya Binayak, Bhaktapur. BoAN provides 6.7 per cent interest per month on its Sulav Bachat Khata and six per cent interest rate on Samridhi Bachat Khata, said a bank press release.
Source:
The Himalayan Times
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Kumari Bank in Birtamod

Kumari Bank Limited has opened a new branch in Birtamod of Jhapa district. The branch was inaugurated by KBL chairman Noor Pratap JB Rana. Speaking on the occasion, KBL acting chief executive officer Kapil Sharma said, "The bank will always focus on offering a number of products and increase its network of branches across the country." According to a press statement issued later, the bank had a total deposit of Rs 12.78 billion and loan of Rs 11.34 billion in the fiscal year 2007-08.
Source: THT
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NCM Mutual Fund's Dividend Distribution

NCM Mutual Fund is distributing 15% dividend to its unit holders from 24th September 2008 (2065 Ashwin 8).
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Salt Trading Corporation's Dividend Collection

Salt Trading Corporation Ltd. has published a notice for its shareholders to collect their dividend amount
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United Bikash Bank's Special General Meeting

United Bikash Bank Ltd. (Bittiya Sanstha) has announced its special general meeting to be held on 4th October 2008 (2065 Ashwin 18).
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Paschimanchal Finance's Right Share Certificate Distribution

Paschimanchal Finance Co. Ltd. is distributing its right share certificate from 17th September 2008 (2065 Ashwin 1).
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Everest Bank Dividend Slip Distribution

Everest Bank Ltd. is distributing 7% convertible preference shares dividend slip from 16th September 2008 (2065 Bhadra 31).
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