NEPSE instructions to bankrupt companies: Pay renewal fee or interest with penalty

Nepal Stock Exchange (NEPSE) has instructed companies that are listed in the market but are financially bankrupt to pay the annual renewal fee. The directive targets 21 companies that have not yet paid the renewal fee, some of which are operational but out of business, while most are troubled or closed. According to the securities listing regulations, NEPSE has clarified that companies that do not pay the fee within the stipulated time will be charged interest along with penalty. In this way, interest will be added at the rate of 10 percent per annum on the companies that refuse to pay the fee.

According to NEPSE, companies with paid-up capital up to Rs 50 crore have to pay annual renewal fee of Rs 1 lakh per annum and companies with paid-up capital of Rs 50,000 or more. However, these 21 companies have not fulfilled this obligation. The list of non-payment of renewal fee includes Butwal Spinning Mills, Gorakhkali Rubber Industry, Crystal Finance, Himalayan Finance, Karnali Bikas Bank, Nepal Share Markets, Capital Merchant Banking and Finance, Nepal Welfare, Mejkan Finance, Himalayan Finance, Shree Bhrikuti Pulp and Papers.

Similarly, NEPSE has also asked Birat Sooz, Arun Vanastha Udyog, Harisidhi Itta Udyog, Nepal Film Development, and Fluor Himalayan to pay the renewal fee. Apart from this, NEPSE has also directed Sriram Sugar Mills, Yak and Yeti Hotel, Jyoti Spinning Mills, Nepal Bitumen and Barrel Industry, Nepal Trading, and Raghupati Jute Mill to pay the annual renewal fee immediately. This shows NEPSE's efforts to maintain the responsibility of the listed companies and the transparency of the market.