NEPSE has been classifying companies since 1996/97 when the number of category ‘A’ companies was seven. [break]
As per the Securities Listing Regulations, the companies under category ‘A’ must have a paid-up capital of at least Rs 20 million, 1,000 ordinary shareholders and uninterrupted profit-making record of three years.
Likewise, book value of share prices of such companies must be higher than the paid-up prices and they must submit their income and expenditure statements to authorities within six months of the completion of the fiscal year.
According to a NEPSE statement, Gandaki Bikash Bank, Gorkha Development Bank, Swabalamban Development Bank, Annapurna Bikash Bank, Excel Development, Himchuli Development Bank, Birat Laxmi Development Bank and Infrastructure Development Bank from development bank group, are list under the category.
Likewise, Lumbini General Insurance and Siddhartha Insurance from insurance group, IME Financial Institution, ICFC Financial Institution and Civil Merchant Financial Institution from finance group have made it to the category.
Of the total companies falling under category ‘A’, 14 are commercial banks, one each are from manufacturing and hydropower sector, 10 from insurance, 37 from finance and 15 are from development bank sectors.
However, six companies out of 13 listed under category ‘A’ in the fiscal year 2007/08 were removed from the list for failing to fulfill the conditions. Those companies losing the status of category ‘A’ are Neco Insurance, Alliance Insurance, Nepal Insurance Company, Lalitpur Finance Company, Cosmic Merchant Banking and Finance Company and Guheswori Merchant Banking and Finance Company.
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