Listing of Stock Dividends of Nepal Reinsurance Delayed Over Six Months

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Kathmandu: Nepal Reinsurance Company’s (NRIC) bonus shares have not been listed in the secondary market even after 6 months of stock dividends distribution. The seventh annual general meeting of NRIC held on 30th Bhadra 2079, had passed the resolution to distribute 5 percent stock dividends to the shareholders.

In subsection 2 of section 41 of the Securities Issuance and Allotment Directive 2074, there is a provision that listing should be completed in the Securities Board of Nepal(SEBON) within 30 days of approval from the AGM. Similarly, the Nepal Stock Exchange(NEPSE) also has a provision to list the bonus shares within 15 days of application submission.NRIC had passed 5 percent bonus shares on the paid-up capital of Rs. 11.65 billion. The company has to list 58,25,000 bonus shares in the secondary market.

Although it is legally required to be listed within one month, banks and financial institutions are found to be able to list within 2 months. In this way, the company in eastern Nepal has taken more than 6 months to complete the work within a couple of months.

As soon as the proposal to distribute bonus shares is passed by the AGM, the new shareholdings should be updated at the Office of the Company Registrar and then get listed on CDSC and NEPSE through SEBON.

 

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