Nepal | September 30, 2020

NRB to offload stake from Nepse

Himalayan News Service
Share Now:

Kathmandu, December 7

Nepal Rastra Bank (NRB) — the central monetary and regulatory authority — has decided to offload its stake from Nepal Stock Exchange (Nepse) — the sole secondary market of the country. The central bank currently has 34.6 per cent stake in Nepse.

As per a letter sent by NRB to Nepse a month back, the local bourse has started the process to offload NRB’s shares through the auction model. “Nepse will table this proposal in the next meeting of the board of directors of Nepse and the board will be responsible for taking further decision on the proposal,” said Chandra Singh Saud, general manager of Nepse.

Nepse will then only begin offloading NRB’s shares as per the decision made by the board. “Once the board takes a decision it will take a short time to complete the auction process,” Saud informed.

The Financial Management Department of NRB had sent the letter to Nepse to start the process of offloading its stake from the capital market operator. “We have not yet received any response from Nepse regarding this issue,” said Rajendra Pandit, deputy spokesperson for NRB. “Nepse is solely responsible for completing the process.”

The government has planned to appoint a strategic partner at Nepse to further develop the capital market. As per plans of the Ministry of Finance, after NRB’s shares are offloaded by Nepse, the government will begin the process to appoint a strategic partner at Nepse.

The central bank had initially announced it would offload its stake from Nepse five years ago but the plan was mentioned in the Monetary Policy only in the current fiscal year. “The plan to offload NRB’s shares in Nepse was announced a long time ago. I think the process will be completed shortly,” Pandit said.

Along with NRB, the government holds 58.66 per cent stake in Nepse. Similarly NIDC Development Bank holds 6.12 per cent and brokerage firms hold 0.62 per cent stake at Nepse.

The central bank has planned to offload its stake from Rastriya Beema Sansthan (government owned life
insurance firm), Rural Microfinance Development Centre (RMDC) and Nepal Grameen Bikas Bank too.

NRB holds 65.2 per cent stake in Agricultural Project Service Centre, 55.56 per cent in Rastriya Beema Sansthan, 10 per cent in the Deposit and Credit Guarantee Fund, 3.05 per cent in Nepal Grameen Bikas Bank and 4.05 per cent in RMDC.


A version of this article appears in print on December 08, 2017 of The Himalayan Times.


Follow The Himalayan Times on Twitter and Facebook

Recommended Stories:

More from The Himalayan Times:

Diogo Jota

Liverpool maintain 100% start with win over Arsenal

LIVERPOOL: Premier League champions Liverpool maintained their 100% start to the season with a 3-1 win against Arsenal at Anfield on Monday leaving them level on nine points with pacesetters Everton and Leicester City. The visitors took the lead through an Alexandre Lacazette strike but L Read More...

Fulham, Aston Villa, Ivan Cavaleiro, Matty Cash

Villa beat Fulham 3-0 to move into top four

LONDON: Aston Villa moved into the Premier League top four after they strolled to a 3-0 win at Fulham thanks to goals from Jack Grealish, Conor Hourihane and Tyrone Mings in a lopsided contest on Monday. The result left Villa, who narrowly avoided relegation last season, fourth on a maximu Read More...

Private hospitals, labs to charge Rs 3,899 for PCR test

KATHMANDU, SEPTEMBER 28 Private hospitals have fixed their own rate for conducting polymerase chain reaction tests, saying that the fee allocated by the Ministry of Health and Population was too less. Eight private hospitals and labs, including HAMS Hospital, Star Hospital, B&B Hospital an Read More...

President issues ordinances on acid attack punishment, acid sale regulation

KATHMANDU, SEPTEMBER 28 President Bidhya Devi Bhandari today issued two ordinances to increase jail sentence for acid attackers and to regulate the sale and distribution of acid and other harmful chemicals. One of the ordinances amended the new penal code, proposing to increase jail term for a Read More...

Editorial: Unemployment problem cannot be addressed unless all levels of govt work together to create jobs within the country

The unemployment problem cannot be addressed unless all levels of govt work together to create jobs within the country Unemployment is a big problem in Nepal. That is why youths in large numbers migrate to other countries, mostly India, the Middle East, Malaysia, South Korea and Japan, where they e Read More...

Ayurvedic literature: Delving into its history

The travelogue of Chinese pilgrim Faxian was the earliest testimony to describe the healthcare system in ancient South Asia. It is close to the description by the earliest Ayurvedic compendium, Charaka Samhita Ayurveda has become a buzzword in the contemporary setting of medicine in the era of COVI Read More...

Six student leaders arrested for staging protest outside Chinese Embassy in Kathmandu

KATHMANDU, SEPTEMBER 28 Six student leaders of Nepal Student Union, the student wing of major opposition Nepali Congress, were arrested today for staging a protest outside the Chinese Embassy at Baluwatar against the alleged border encroachment by the Chinese side in Humla district. The NSU le Read More...

Woman found dead in Saptari district

A police team has been deployed from Province Police Office, Janakpur, to investigate the case RAJBIRAJ, SEPTEMBER 28 A 50-year-old woman was found dead at Mayanakaderi village, Ward No 2 of Tirhut Rural Municipality, Saptari, yesterday. The body of Dayaman Devi, wife of local Shiv Narayan, w Read More...