Where are these 14 Production-Based Companies Listed in NEPSE?

Jun 01, 2018 Merolagani



In the budget announcement, Finance Minister Dr Yubraj Khatiwada announced of bringing production-based companies having above Rs 1 billion in paid-up capital into the capital market. Moreover, if companies having Rs 500 million in paid-up capital issue IPO to the general public, the government is providing 10 percent income tax exemption for three years.

However, if we conduct a reality check of production based companies that were listed in NEPSE, in fact, it is quite discouraging.  Out of 18 production based companies listed in NEPSE, share trading of 14 companies has been stalled for a very long time. Thus, the government should also investigate about those 14 companies if it wants to convert the announcement into reality.

Faith of these 14 companies draw a conclusion that it is not enough to get the production-based companies listed in NEPSE, but timely inspection, supervision and action (if required) by regulatory bodies is an essential part to secure public investment.

The share trading of these 14 companies has been halted due to the failure of conducting AGMs and defiant of NEPSE rules. Currently, these companies are inaccessible from NEPSE.  NEPSE has time and again issued various notices to these companies to come in contact, but has remained in vain. Most of these companies are government owned and privatized companies.




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