Some companies pay annual renewal fee

KATHMANDU: Some firms -- United Insurance Company, Raghupati Jute Mills, Nepal Bitumin and Barrel, Nepal Finance and Nepal Electricity Authority (NEA) Bond -- have paid their annual listing renewal fee today.

Nepse has also allowed today the trading of Paschimanchal Development Bank and Salt trading Corporation, which have already paid their renewal fee within the time but Nepse -- by mistake -- halted their trading yesterday.

Though, the secondary market has never seen the trading of bonds, it has also frozen the trading of NEA Bond and Nabil Bank's Bonds due to their failure in paying the annual renewal fee. Similarly, it has halted the trading of Nepal Development Bank and Hotel Yak & Yeti. The former has been suspended after the Nepal Rastra Bank filed a case asking for permission to liquidate it at the Court and the later has been not paying the renewal fee for last three years as it wanted to be delisted. Nepse has halted the trading of 19 companies -- including Paschimanchal Development Bank and Salt trading Corporation that have already paid their fee.

The renewal fee has to be paid -- as according to the Share Listing Regulation -- within the three months of the new fiscal year that ended on October 17. "Due to their failure in paying renewal fee, the Nepse has halted their trading yesterday -- the first day of the trading of this week after the holiday," according to the Nepse. A company has to pay Rs 50,000 renewal fee, if its paid-up capital is more than Rs 100 million. Similarly, a company has to pay Rs 35,000 fee, if its paid-up capital is between Rs 50 million and Rs 100 million. One has to pay Rs 25,000, if the paid up capital is between Rs 10 million and Rs 50 million whereas a company has to pay Rs 15,000, if its paid-up capital is less than Rs 10 million. Meanwhile, Nepse today also lost -- though a marginal 0.05 point -- to close trading at 601.16 points. But the float index gained 0.04 point to close at 57.48 point.

Api Finance has started its trading from Thursday at Rs 540 per unit of shares. Its 10 units of shares were traded for Rs 5,400 on the first day at the secondary market.

Yak & Yeti to be delisted soon

KATHMANDU: Hotel Yak & Yeti -- that has been wanting to be delisted -- could be delisted soon. As according to the rule, if a company doesnot pay annual renewal fee for three consecutive years, it could be delisted. The hotel has not been paying its renewal fee for three consecutive years.

The Nepse board has also discussed on the hotel's request to be delisted but has not taken any decision. Only four hotels are listed in the hotels sub-group under Nepse. Hotel Yak & Yeti, Soaltee Hotel, Taragoan Regency (Hyatt) Hotel and Oriental Hotel (Radisson) have listed a total of 24,225,898-unit shares in the secondary market.

Except for the Soaltee Hotel that has a paid up value of Rs 10 per unit share others have Rs 100 paid up value per unit share. Hotel Yak & Yeti has listed 2,209,208-unit of shares with a face value of rs 100 per unit. — HNS