Gold import hits a new roadblock

From the looks of the things, import of gold and silver will not resume at least in next few days due to delay in framing guidelines regarding import of gold and silver by commercial banks. The Ministry of Commerce and Supply (MoCS) has finally asked the central bank to prepare a guideline for commercial banks, stating terms and conditions for the import of gold and silver.

MoCS request comes after two weeks since the financial ordinance has lifted the ban on the import of gold and silver. However, the ministry has asked the central bank to consult it while preparing the guidelines. We sent the official letter today to Nepal Rastra Bank (NRB), asking to draft a regulation regarding bullion import, said Purushottam Ojha, Secretary at MoCS. The MoCS letter has asked NRB to frame the regulation in coordination with the ministry. Thus, this will take a few days more," said Gopal Kafle, Spokesperson for NRB.

If NRB alone had to prepare the regulation, it would have been ready in a day. But now, we have to prepare it in consultation with MoCS. It may take a little longer," he added. The government officially lifted the ban on import of gold and silver two weeks ago, authorising commercial banks as the sole importer for both gold and silver. However, commercial banks fall under the jurisdiction of NRB.

The central bank is yet to issue guidelines for commercial banks to follow regarding import of the precious metals. Until the guidelines have been issued, commercial banks do not have the authority to import or sell gold and silver to traders. Most importantly, NRB needs to fix the import quota for both the metals.

Source:
tht

Bonus Share of Civil Merchant Bittiya Sanstha

The BOD meeting of the Civil Merchant Bittiya Sanstha Ltd dated 2067-08-15 has decided to propose 30 percent bonus share on subject to approval from NRB and upcoming AGM.

Source:
nepalstock.com

Mahalaxmi Finance into 17th Year

Mahalaxmi Finance entered into the sixteenth year of operation on Wednesday. The finance company has plans of distributing 7.75 per cent dividend of its net profit. The decision has to be endorsed by the company's annual general meeting. The company was able to collect Rs 2 billion as deposits and floated loans worth Rs 2.17 billion till the mid-November. The company with its branches at Birgunj, Kalaiya, Narayanghat, Kathmandu, Hetauda and Malangawa provides modern banking services including any branch banking.

Source:
tht

Appointment of new stock brokers faces fresh setback

It has already been three years since the attempt for adding stockbrokers in the capital market started. However, the process doesn't seem to be completed any time soon. The process has been stuck in the Securities Board of Nepal (SEBON) after the Nepal stock Exchange recommended 34 names of prospective stockbrokers. SEBON, the capital market regulator, will have to select the final 27 names.

The process prolonged after SEBON received complaints against around five prospective stockbrokers. "We are probing on the basis of complaints," said Surbir Poudel, chairman of SEBON. The recommended names against whom the complaints have been filed are charged of being involved in the companies listed in the stock market. One of the eligibility criterions for the potential stockbrokers was that they should not have been involved in any company listed in the stock market. Proprietor of one of the prospective stockbrokers has been charged of working in SEBON itself. "It will take some time to take final decision," said Poudel. "We will have to explore documents."

The board will take a final decision itself only if all the issues become clear. "Otherwise, we will return the recommended names to NEPSE for review," said Poudel. SEBON can remove the recommended names from the list, if the allegations proved to be true. "If NEPSE is found to be involved in irregularities, we will take action against it as well," said Poudel. If the complaints couldn't be proved and the cases settle, people will again be given another chance to file complaints against the recommended names.

With the high possibilities of business growth amid growing number of companies, investors and shareholders and increased market capitalisation, a lot number firms have been interested in stockbrokerage business. Currently, there are 23 stockbrokers, whose number had actually decreased from initial 31, despite the growth of the capital market over the last one-and-a-half decades after the establishment of NEPSE.

Of the 34 companies recommended, a few of them have obtained equal marks. Determining the status of these firms will require some time. SEBON can select the companies through lucky draw or other measures. After the completion of the investigation, the board will allow the recommended firms to apply for licences. After they complete all the procedures, SEBON will give them some time for infrastructure development. It will then observe the condition of infrastructure and provided license.

The recommended stockbrokers say that attempts are being made to restrict them from getting licence. "Examination was taken on transparent manner," said a chief of a recommended firm. "Conspiracy is being hatched not to allow adding new stockbrokers and crate ground for conducting new round of examination." NEPSE had also received complaints against few prospective firms prior to recommending the names. Two firms, against whom the complaints were proved, were de-listed. The NEPSE investigation had revealed that people involved in both the firms were also involved in listed companies.


The process of adding new brokers has remained stagnant since 2007 after the Commission for Investigation of Abuse of Authority termed the process non-transparent. The Supreme Court gave a go ahead to the process a year ago, however, the process has not concluded yet.

NCC Bank & IME join hands

Nepal Credit and Commerce Bank (NCC Bank) has entered into an agreement with International Money Exchange (IME) regarding the operation of remittance services. Under the agreement, the money sent through IME network from foreign countries can be recieved at NCC bank's any branch throughout Nepal. The bank has 17 branches across Nepal.

Source:
tht