13 companies to be de-listed

Kathmandu, October 22:

Nepal Stock Exchange Ltd (NESEL) is yet to recover over Rs 2.90 million as listing fees from some three dozen companies listed for share trading at the country’s sole secondary market.

According to NESEL, 34 companies listed at the Nepse floor for share trading failed to pay the annual listing fees within the stipulated time as per the Securities Transactions Act 1983 and Regulations 1984.

Listed companies ought to pay the annual listing fee by the end of Aswin during each fiscal year.

The companies that have not yet paid the listing fees include 23 companies from the manufacturing and processing group, five companies from trading group, three from finance group, two from the others group and one from the hotel group.

Of the total eight trading groups listed Nepse, companies belonging to commercial banks group, insurance group and development banks group have cleared their dues within the stipulated time.

The majority of companies that have not paid the listing fees are state-run or have government equity in them. Moreover, most of the companies have either already shut down or are on the verge of closure.

Duration of dues that have to be paid ranges from one year to 11 years, whereas the amount ranges between Rs 15,000 and Rs 275,000. According to NESEL, 15 out of the 34 companies have not paid the listing fee for the fiscal year 2005-06.

The companies that failed to pay the annual listing fees include Hotel Yak & Yeti, Necon Air Ltd, National Productivity and Economic Development Centre Ltd (NPEDC), Butwal Spinning Mills and Morang Sugar Mills Ltd and among others.

Birat Shoe Ltd, Shree Ram Sugar Mills Ltd, Nepal Vanaspati Ghee Udyog Ltd and Raghupati Jute Mills are the other companies that have not paid the listing fee to NESEL. Of these companies, NPEDC is fully state-run and Necon Air has already become bankrupt.

Ace Laboratories (Nepal) Ltd has the largest due amount of Rs 275,000 for the last 11 years, whereas Nepal Khadya Udyog Ltd, Nepal Welfare Company Ltd and Shrijana Finance Ltd have the least amount of Rs 15,000 each to be paid for NESEL.

Biratnagar Jute Mills (BJM) Ltd has the second largest due of Rs 250,000, while Himal Cement Factory Ltd (HCFL) and Fleur Himalayan Ltd (FHL) each have Rs 200,000. Of these three companies, BJM has not paid the listing fees for the last 10 years, whereas HCFL and FHL both have dues since last eight years.

Sources at the Nepse said that NESEL is set to de-list share trading of 13 companies from the Nepse floor. These companies are Nepal Battery Co Ltd, Nepal Plywood & Bobin Co Ltd, Juddha Match Factory, Himal Cement Factory, Sayapatri Colour Lab, Nepal Med Ltd, Ace Laboratories Ltd, Bansbari Leatherage & Tannery, Necon Air, Nepal United Co Ltd, Plastic Trading Co Ltd, Nepal Byapar Bikash (Koshi) Ltd and Nepal Byapar Bikash Co Ltd.

These companies have either been already closed down or have not paid the listing fee for more than three years.

Nepse had de-listed 25 companies from the trading list some two years ago.