Kathmandu. Nepal Stock Exchange (NEPSE) has been discussed and discussed for a long time.
A high-level commission formed by the government has also suggested bringing a new stock exchange along with the restructuring of NEPSE. Nepse itself has been preparing the report and sending it to the Ministry of Finance, showing the need for restructuring.
Following the recommendation of the high-level commission, the Securities Board of Nepal has directed NEPSE to submit an action plan for restructuring on the directives of the Ministry of Finance. Nepse has not been able to get approval from the board of directors after the chairman has not been present for a long time after preparing the action plan for restructuring.
Nepse’s current share structure
At present, nepse has a paid-up capital of Rs 1 billion. At present, the government is the largest shareholder of NEPSE. The government owns 5,866,245 units (58.66 per cent) of shares in NEPSE.
Similarly, Rastriya Banijya Bank is the second largest shareholder. The bank owns 1,122,974 units (11.23 per cent) of shares in NEPSE.
Employees Provident Fund (EPF) owns 1 million units (10 per cent) of shares.
Similarly, Nepal Rastra Bank owns 950,637 units (9.51 percent), Prabhu Bank 500,000 units (5 percent), Laxmi Sunrise Bank 5 percent (5 percent) and other groups 60,144 units (0.60 percent).
Share structure that can be maintained after the restructuring of NEPSE
After the restructuring of NEPSE, a proposal to increase the current paid-up capital to Rs 3 billion has been submitted to the Ministry of Finance.
According to the report, the government’s shareholding will be kept at 19.55 percent after the restructuring of NEPSE. Of these, the government will own 5,866,245 units of shares.
Similarly, 1,122,974 units (3.74 percent) of Rastriya Banijya Bank, 1 million units (3.33 percent) of Employees Provident Fund and 950,637 units (3.17 percent) of Nepal Rastra Bank have been proposed to be held in NEPSE.
Similarly, prabhu bank will own 500,000 units (1.66 per cent), Laxmi Sunrise Bank 5 per cent (1.66 per cent) and other groups 60,144 units (0.20 per cent).
Nepse has proposed to issue 30 percent i.e. 90 units to the general group during the restructuring of NEPSE.
Similarly, domestic institutional group has been proposed to own 6.5 million units (21.67 percent) and foreign strategic partners will retain 4.5 million units (15 percent).
