Share Transaction of 21 Companies still Suspended

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Share Transaction of 21 Companies still Suspended

December 6: The share transaction of 21 companies is yet to resume despite new legal provisions that allow suspension of trading of companies opting for merger or acquisition for a maximum of 15 working days.

The Securities Board of Nepal has already implemented the Guidelines on Merger and Acquisition of Organized Institutions 2079 starting from November 10. According to the provisions in the guidelines, the share transaction of listed companies will be suspended for a maximum of 15 days once they complete all the processes required for merger or acquisition and start integrated business.

The share transaction of 34 companies which were in the process of merger or acquisition was suspended before the new guidelines were implemented. The suspension on trading of share other than primary shares of those companies should have been lifted as per the new provision.

But the concerned bodies have lifted the suspension of only 13 companies.

According to the new arrangement, the companies should submit application to the securities market operator Nepal Stock Exchange Limited (NEPSE) and the central deposit service provider CDS and Clearing Limited (CDSC) to lift the suspension on share transactions of shares other than the primary shares.

NEPSE, the operator of the securities market, has informed that the suspension of share transaction can be removed a day after the concerned company submits application with the details of the primary shareholders.

NEPSE spokesperson Murahari Parajuli said that it takes only a few minutes for the company to prepare the details of the primary shareholders.






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