On Falgun 18, 2079, the Securities Board of Nepal (SEBON) approved the “10.75% NMB Debenture 2089/2090”.
NMB Bank Limited (NMB) plans to issue 40 lakh unit debentures at Rs 1000 per unit. The bank will offer a 10.75% interest rate on the debenture for ten years
In NEPSE, 11,00,000 units of “10.5% BOK Debenture 2086” have been listed.
Bank of Kathmandu Limited issued 11,00,000 units of “10.5% BOK Debenture 2086” between the 2nd and 7th Bhadras of 2079.
6.60 lakh units were subscribed via private placement from the total issue of 11 lakh units, while the remaining 4.40 lakh units worth Rs. 44 crores were open for public issue, 5% of which was also allocated to mutual funds.
The “10.50% BOK Debenture 2086” has a maturity period of 7 years and will provide an annual return of 10.50% during that time.
Global IME Bank Ltd will close the public issuance of the “11.25% Global IME Bank Debenture 2084/85” today, February 5th.
The issue had begun on the 29th of Magh and was scheduled to end on the 3rd of Falgun. Nevertheless, the bank earlier declared in a notification that the deadline will be extended until February 14, although the subscription would expire as soon as it is subscribed. Because the offering is now oversubscribed, the business will shut it today till the end of banking hours.
50 lakh units would be issued at a par value of Rs.1000 each. 30 lakh units of the overall offer will be subscribed through private placement, while the remaining 20 lakh shares totaling Rs. 2 Arba are eligible for public issuance, with 5% reserved for mutual funds. The offering would generate a total of Rs 5 arba.
Sunrise Capital Ltd has been named the issue manager. Investors can apply for as little as 25 units and as many as 100,000 units.
The “11.25% Global IME Bank Debenture 2084/85” has a maturity duration of 5 years and will provide unit holders with 11.25% annual yields until the date of maturity.
Unilever Nepal Limited (UNL) rose the most for the day, gaining 8.54%.
Garima Debenture, 2085 (GBBD85) dropped the most today, losing 9.97%.
Only one sector finished in the green today, “Hotels and Tourism,” which lost the most 1.24% apiece, while “Manufacturing and Processing” gained 0.90%.
The public offering of the “10.30% Standard Chartered Bank Nepal Limited Debenture” by Standard Chartered Bank Nepal Limited (SCB) has been extended. On the 26th of Magh, the issue was launched. The early deadline was today, on the 1st of Falgun. Because the issue has not been fully subscribed, the deadline has been extended until Falgun 08.
A total of 24 lakh units will be issued at a par value of Rs.1000 each. 14.40 lakh units of the total issue will be subscribed through private placement, while the remaining 9.60 lakh units worth Rs. 96 crores will be open for public issue, with 5% reserved for mutual funds. The issuance will generate a total of Rs 2.4 Arba.
Global IME Bank Limited has opened public issue of 50 lakh units’ worth of ‘11.25% Global IME Bank Debenture 2084’ from Magh 29, 2079. The issue will conclude on Falgun 3, 2079 at the earliest and by Falgun 14, 2079 at the latest.
The par value of the debenture is NRs. 1,000 per unit. From the total 50 lakh units of ‘11.25% Global IME Bank Debenture 2084’, 30 lakh units are allocated for subscription via private placement and 20 lakh units are for the general public, including a 5% quota for mutual funds.
The NEPSE index finished at 2,177.34 today, up 76.64 points from the previous trading day’s close. This is a 3.65% increase. Yesterday, the index rose 4.57 points.Today, the index began at 2,100.12 and closed at 2,099.03. It reached a high of 2,177.75 before closing at 2,177.34.
59,927 transactions resulted in the exchange of 260 scrips. A total of 9,333,788 shares were traded, totaling Rs. 3.362 Arba in turnover. This is more than the previous day’s turnover of Rs. 1.474 Arba.
The largest turnover was Rs. 12.92 crores, with NIC Asia Bank Ltd. (NICA) ending at a market price of Rs. 835 per share. The most traded shares were those of Ngadi Group Power Ltd. (NGPL).
Five scrips gained everything they could and made it to the positive circuit.12% ICFC Finance Limited Debenture 2083 (ICFCD83) fell the most today, losing 5.90%.Today, all sector indexes finished in the green, with “Investment” gaining the most 6.25% and “Mutual Fund” gaining the least 2.24%.
The “8% Nepal SBI Bank Debenture 2079” has been delisted from the NEPSE.On March 20, 2079, the “8% Nepal SBI Bank Debenture 2079” matured. The debenture provided unitholders with an 8% annual return and will now repay the seed cash and distribute the income to unitholders through its branch offices.
Unitholders can obtain further information from the bank’s share registrar, Nepal SBI Merchant Banking Limited, Hatisar, Kathmandu, Nepal.
A share is essentially a fraction of a company’s ownership. Purchasing or selling shares entails acquiring or disposing of a portion of the company’s ownership. The stock market, also known as the share market, is a place where you can buy and sell stocks. In order to raise money, public corporations usually sell shares to the public, but the stock market often trades other instruments such as debentures, bonds, and mutual funds.
Dividends are a way for you to get a piece of those companies’ earnings as a shareholder. While share trading is an exciting way to earn money both actively and passively, it is also risky since investors can have to bear the loss if the company fails. As a result, as a novice, it is important that you gain a thorough understanding of the market before investing your money in stocks.
Here is a brief introduction of how you can participate in the game of stock trading.
Opening a dematerialized (DEMAT) account at one of the Depositary Participant (DP) licensed by the Central Depository System and Clearing Limited (CDSC) is a prerequisite to participate in both primary and secondary market. Most commercial banks, merchant bankers and stockbrokers provide such services. If you already own some stocks in your name, then you can give your DP to dematerialize your physical share certificates into dematerialized shares. The DEMAT account is similar to a bank account which debits and credits the shares you sell or purchase. Most DP’s also provide clients with facilities to check their DEMAT account status online as well.
To get started in the stock market, it is essential to first understand how the market functions. Securities Board of Nepal (www.sebon.gov.np); the sole regulator of the capital market is a useful source for primary information. Its website provides information on various securities laws, investor education, and upcoming public issues amongst others. Similarly, the Nepal Stock Exchange (www.nepalstock.com) the sole secondary market; and its mobile-based application is a great source to get hands-on information. There are many other popular websites that provide constant updates about the capital market such as; Share Sansar and Mero Lagani. Furthermore daily national newspapers, websites of merchant bankers and credit rating agency – icranepal.com – also provide good information.
One of the best opportunities to participate in the capital market is to apply for primary offers in the primary market such as; Initial Public Offering (IPO) or Further Public Offering (FPO). Most companies offer primary issues to the general public at face value of NPR 100 per stock, or at a premium based on their valuations. The risk is lower when you purchase in the primary market as you get an opportunity to buy shares at a lower cost as compared to purchasing those shares in the secondary market once they are listed. Also, look out for opportunities to participate in the primary offering of mutual fund schemes which can be a beginning point.
News about primary issues generally comes out in national newspapers and are widely announced on other media platforms. Once you know the primary issues are out, you can read their prospectus to see their detail information such as; past and projected performance, & management amongst others. You can also look at their credit rating provided by a licensed credit rating agency before making the decision to invest.
All the stocks offered via the primary market are listed in the secondary market i.e. Nepal Stock Exchange (NEPSE); currently, there are 231 companies listed in the stock exchange. The secondary market provides the platform to sell the shares you hold or purchase new shares from the market. The share price of these listed companies and the value of NEPSE Index changes every day based on total demand and supply of shares in the market.
If you wish to get involved in the secondary market, you will need to open a transaction account at a stock broker’s office. There are currently 50 stockbrokers licensed by NEPSE while there are a few stock broker offices outside Kathmandu. Once you open an account with a stockbroker, they will provide you with a unique ID code via which all the transactions in your name will be executed.
To make a purchase or sale order you will simply have to call your stock brokers or visit their office to place an order, make sure you have the shares in your DMAT account before you place a sell order to your stockbroker. The stockbroker charges some commission as a brokerage fee for each transaction while you have also have to pay a capital gain tax of 5% if applicable while making sales.
If you are still confused and less confident about entering the market or you do not have time, energy and resources, do not worry as there are a number of professional licensed Portfolio Management Companies providing you with a full range of products and services under Portfolio Management Services (PMS). Based on your investment goals and expectations, these portfolio managers develop portfolios matching your risk appetite and invests in the capital markets on your behalf. The portfolio manager charges minimal annual and performance fees while these services offer you the opportunity to grasp the benefits of the capital markets. Moreover, you can also handover your existing portfolio to these portfolio managers for restructuring and further management.
All in all, as the stock market is constantly evolving and getting technical, retail investors are highly advised to seek professional advice and avoid making investments on herd mentality – invest wisely!
Nepal Stock Exchange (NEPSE) is the country’s sole stock exchange. It is located in Kathmandu, Nepal, at Singha Durbar Plaza.
In 2033 BS, the government established a security purchasing and trading center in Nepal. In 2050 BS, the same location became the Nepal Stock Exchange Limited (NEPSE).
On January 13, 1994, the Nepal Stock Exchange (NEPSE) inaugurated its trading floor (29 Poush, 2050). It is Nepal’s sole stock exchange. As of May 13, 2020, the total market capitalisation of the companies listed on NEPSE is around Rs 1.54 trillion.
The primary function of the stock exchange is to facilitate the trading of listed securities. NEPSE has been trying to register publicly issued securities in the secondary market so that they can be traded easily. This is referred to as listing.
The Nepal Stock Exchange Limited (NEPSE) is a specialized government-owned entity governed by the Companies Act. It does business in compliance with the Securities Act. Its principal goal is to assist to the country’s economic development through capital formation and mobilization, as well as to stimulate investor interest by establishing a secondary market for the trading of securities issued by the Government of Nepal and organizations.
Nepse has been a prominent regulatory organization in terms of market operations, listed firms, and securities dealers, in keeping with its goal of trading shares, bonds, mutual fund units, and other securities through member brokers.
At the moment, the Nepal Stock Exchange offers general investors the ability to purchase and sell securities through 50 member brokers and 41 Remote Work Stations (RWS) in key cities both inside and outside the Kathmandu Valley.
The brokerage firm and its branches are spread across 21 different cities in Nepal.
Nepal’s capital market is in its early phases of development due to the size of the market, kind of company, financial instruments to be exchanged, laws and regulations, technology utilized for business, other physical infrastructure, manpower, and so on.
Similarly, Nepse is a founder member and current Executive Board Member of the South Asian Federation of Exchanges. It is also an Affiliate Member of the World Federation of Exchanges, with plans to become a full member soon.
The Government of Nepal promotes the Nepal Stock Exchange (NEPSE). The Nepalese government owns 58.65 percent of NEPSE.
The significant shareholders of the Nepal Stock Exchange (NEPSE) are shown in the table below. It also includes a proportion of ownership.
| S.No | Shareholders | Share Ownership (%) |
| 1 | Government of Nepal | 58.65 |
| 2 | Nepal Rastra Bank | 34.6 |
| 3 | Rastriya Banijya Bank | 6.12 |
| 4 | Members(Brokers) | 0.62 |
According to the Securities Act of 2006, the Board of Directors (BOD) of the Nepal Stock Exchange (NEPSE) is made up of members from various sectors. The BOD now consists of two members from the Nepal Government, one from Nepal Rastra Bank, and one from Rastriya Banijya Bank. Furthermore, the BOD will propose one member as a capital market expert. NEPSE’s General Manager will serve as a director on the BOD.
NEPSE index is the market value weighted index. This index shows the aggregate growth in capitalization of companies listed in Nepal Stock Exchange.
Nepse Index reached its all-time high of 1881.45 on July 27, 2016.
Index calculated from the market capitalization of companies classified under group “A” is called sensitive index.
The sub-indices in Nepse include:
1. Banking
2. Development bank
3. Finance
4. Microfinace
5. Manufacturing And Processing
6. Hydro Power
7. Non Life Insurance
8. Life Insurance
9. Hotels
10. Mutual Fund
11. Other
Provides a market platform for buying and selling of secondary shares, debentures and bonds.
Develops and expands the secondary market in the capital market by supporting the policy and guidelines of the Government of Nepal.
Regulates listed companies, brokers and investors.
Spreads public awareness about capital markets.
Regulates and monitors the listed public limited companies.
Take membership with national and international capital market organizations.
List new companies to trade on the stock exchange, as well as OTC companies that are not listed or disbanded.
Development and expansion of the capital market by increase the number of institutions involved in the market.
Runs a clean, transparent, credible, fair market and works in the interest of investors.