Day: May 26, 2024

  • Nepal’s Investors Anticipate Budget Reforms for 2081/82

    Nepal’s Investors Anticipate Budget Reforms for 2081/82


    The investment community in Nepal eagerly awaits the presentation of the national budget for the fiscal year 2081/82 by the Honorable Finance Minister on Jestha 15, 2081. Investors are hopeful that the new budget will include provisions to support and boost the capital market sector.

    Currently, the Securities Board of Nepal mandates a withholding tax on capital gains from securities listed on the Nepal Stock Exchange. Investors holding shares for more than 365 days are subject to a 5% tax on capital gains, while those holding shares for 365 days or less are subject to a 7.5% tax.

    Investor associations are advocating for key amendments to these tax regulations. They propose that the withholding tax be converted into a final tax and that the Income Tax Act’s schedules be revised accordingly. Specifically, they are calling for the short-term capital gains tax (for shares held for 365 days or less) to be reduced to 5% and the long-term capital gains tax (for shares held for more than 365 days) to be reduced to 3%.

    These amendments aim to encourage individual participation in share trading and simplify tax collection and record-keeping processes. The investor community believes that such changes will boost investor confidence, increase trading volumes, and ultimately enhance government revenue through higher tax collections.

  • SEBON Approves 7% Nepal SBI Bank Debenture for 2090

    SEBON Approves 7% Nepal SBI Bank Debenture for 2090


    The Securities Board of Nepal (SEBON) has approved the “7% Nepal SBI Bank Debenture, 2090” for its pipeline. The debenture issue is valued at Rs 3 Arba.

    Nepal SBI Bank Limited (SBI) plans to issue 3,000,000 units of the debenture, each priced at Rs 1000. Out of these, 12 lakh units will be available to the general public, while the remaining 18 lakh units will be allocated for private placement.

    Nabil Investment Banking Limited is managing this debenture issuance. The application for the debenture was submitted to SEBON on Jestha 2, 2081.

    The 7% Nepal SBI Bank Debenture, 2090, as the name indicates, offers a 7% annual return to its unitholders and has a maturity period of 10 years, set to mature in 2090 BS.

  • NIC Asia Bank to Auction 50,000 Promoter Shares of CIT

    NIC Asia Bank to Auction 50,000 Promoter Shares of CIT


    NIC Asia Bank Limited (NICA) is set to auction 50,000 units of promoter shares of Citizen Investment Trust (CIT) to qualified investors from Jestha 13 to Jestha 20, 2081.

    The auction invites qualified investors to bid on the promoter shares, with a minimum bid rate set at Rs. 758 per share and a minimum bid quantity of 10,000 units. Bids must be submitted at the bank’s central office located at Trade Tower Nepal, Thapathali, Kathmandu. While investors can bid for the entire issue, they must comply with Nepal Rastra Bank’s regulations regarding the maximum quantity of shares per entity.

    As of now, CIT’s last trading price (LTP) is Rs. 2,168.2, and CITPO’s LTP stands at Rs. 717.