Nepse delists 13 companies from stock exchange

Nepal Stock Exchange (Neplse) has delisted 13 companies as those companies failed to hold annual general meeting (AGM), get their accounts audited and pay listing charge for two years.

The Board meeting of Nepse on sunday decided to remove the names of those companies from its list.

The delisted companies include Necon Air, Nepal Battery Company Ltd, The Juddha Match Factory, Nepal Plywood and Bobin Company, Himal Cement, Sayapatri Color Lab Nepal Medical Ltd, Ace Laboratories (Nepal), Bansbari Leather, Nepal United Company, Plastic Trading Company, Nepal Byapar Bikas Koshi and Nepal Byapar Bikas Company.

Most of the delisted companies have already been closed. According to Rewat Bahadur Karki, General Manager of Nepse, there are 23,383 shareholders in delisted 13 companies which owe Rs. 1.85 millon due as listing fee.

According to the Stock Exchange Regulation 2002, the companies which do not respond within 15 days of the decision of delisting to the Nepse are automatically delisted.

Despite having a provision that companies hold AGM within six months from the end of every fiscal year, many listed companies do not follow it. Further flouting regulations, they do not disclose their real financial status, thereby depriving investors from knowing about their actual health.

Most of the companies from trading, manufacturing and other sectors have shown poor performance. As a result, market value of their share prices is far below of what the face price was.

However, the number of the companies listed in 'A' category has increased. Companies listed in 'A' category grew to 66 during current fiscal year from 56 of previous fiscal year.

Three companies have been listed in 'A' category respectively each from Banking, Insurance and Other group while three are from Development Bank group and three from Finance group.

Nepse delists 13 companies from stock exchange

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