Nepal | September 29, 2020

Nepse to separate microfinance and development banks sub-indices

Himalayan News Service
Share Now:

Kathmandu, October 24

Nepal Stock Exchange (Nepse) — the sole secondary market of the country — has planned to separate microfinance institutions from the sub-index of development banks. Nepse will introduce a new sub-index and separate development banks and microfinance institutions.

Chandra Singh Saud, the newly-appointed general manager of Nepse, had authorised separating development banks and microfinance institutions on October 15. The government had appointed Saud as general manager of Nepse on October 9.

According to Murahari Parajuli, spokesperson for Nepse, the local bourse is doing internal trial to introduce a new sub-index within next week.

“Our technical team is testing the system to introduce a new sub-index. Nepse will make it live after fixing technical problems,” he said. “We have seen that the share prices of microfinance institutions are highly volatile. It is difficult to discern the real value of development banks and microfinance institutions when they are grouped together, which is why Nepse is planning to separate them.”

From the first day of separation, the sub-index of microfinance institutions will be calculated as per their price. Nepse calculates the sub-index according to the traded share price of the individual company of the subgroup that is subtracted from the previous day’s traded share price and divided by 100.

In the secondary market, shares of microfinance institutions have higher value against the share price of development banks. Microfinance institutions are registered as class ‘D’ and development banks are registered as class ‘B’ financial institutions at Nepal Rastra Bank.

Currently, 71 companies are listed under the sub-index of development banks and out of them 38 are development banks and 33 are microfinance institutions. A total of 196 companies are listed under 13 groups at Nepse. After separation of microfinance companies, there will be 14 subgroups in the secondary market.

The sub-index of development banks declined by 11.64 points or 0.61 per cent to land at 1,894.97 points today.


A version of this article appears in print on October 25, 2017 of The Himalayan Times.

Follow The Himalayan Times on Twitter and Facebook

Recommended Stories:

More from The Himalayan Times:

Four Covid-19 fatalities recorded on Monday, tally shifts to 481

KATHMANDU: Four people passed away from Covid-19 related complications in the last 24 hours, with which the nationwide death-toll has moved to 481. Two women and two men lost their lives due to this infection, the Health Ministry’s latest update showed. Read Also: 1,351 new cases take Nepal Read More...

Royal Bengal Tiger of Chitwan National Park

Mahout killed in tiger attack in Chitwan National Park

CHITWAN: A man has been killed in a tiger attack in an intermediate community forest of Chitwan National Park today. Previously, a person was killed by a tiger two days ago on Saturday in the western part of Chitwan district. The deceased has been identified as Babana Chaudhary (55) of Ratnanagar Read More...

Coronavirus , vaccines, vaccines trails

Inovio's potential COVID-19 vaccine trial on partial clinical hold

LONDON: Inovio Pharmaceuticals Inc said on Monday the US Food and Drug Administration had placed a partial clinical hold on the company's planned mid-to-late-stage trial of its experimental coronavirus vaccine candidate. The company said the pause was not due to any side effects in its early-stag Read More...

Ronaldo double earns point for 10-man Juventus at Roma

ROME: Cristiano Ronaldo’s second goal of the night rescued a 2-2 draw for 10-man Juventus away to AS Roma in Serie A on Sunday, after Jordan Veretout had twice put the capital club in front. Veretout and Ronaldo netted penalties after both teams were penalised for handball, and the French midfield Read More...

Nepal COVID-19 Update: 1351 new cases, 742 recoveries, four fatalities recorded on Monday

KATHMANDU: Nepal’s Health Ministry, in its regular press briefing, shared the latest updates on coronavirus contagion from across the country, and government’s response to the health crisis. READ ALSO: Kathmandu Valley records 817 infections on Monday As of today, 998,407 tests throug Read More...

K-pop’s BLACKPINK drop teaser for title track ‘Lovesick Girls’ from debut album

KATHMANDU: K-pop’s most popular girl band BLACKPINK on September 28 announced Lovesick Girls, the title track of their debut full-length LP The Album. According to The Korea Times, the group's label YG Entertainment dropped a teaser poster on social media, announcing the title track, Lovesi Read More...

President issues three ordinances

KATHMANDU: President Bidya Devi Bhandari has issued three ordinances, including one related to prevention and control of acid and other harmful chemicals. The President issued these ordinances in accordance with Article 114 (1) of the Constitution of Nepal and on the recommendation of the Council Read More...

Nepal, Oman to sign labour agreement soon

KATHMANDU: Nepal's Ambassador to Oman, Sharmila Parajuli Dhakal paid a courtesy call on Labour Minister of Oman Dr Mahad bin Saeed bin Ali Baouin at latter’s office. Ambassador Dhakal congratulated Dr Mahad for his appointment to the post of Labour Minister of Oman. On the occasion, both o Read More...