My Republica: 90 listed firms still to submit 2012/13 report to Sebon

SAGAR GHIMIRE
KATHMANDU, June 13:Though companies listed in Nepal Stock Exchange (Nepse) are required to submit their quarterly report to the Securities Board of Nepal (Sebon), a large number of companies have been found flouting the rule due to weak regulatory mechanism. 

According to the Securities Registration and Issue Regulations 2008, listed companies are required to submit their annual reports to Sebon within five months of the end of the fiscal year. Similarly, they need to send quarterly reports within thirty days of the end of the quarter period, agenda of the AGM before the AGM, and decisions taken by the AGM within thirty days of the AGM. If the company has taken any decision that affects its share prices in the market, the company should inform Sebon within three days. 

Information posted on Sebon´s website shows, 90 out of 230 listed companies have yet to submit their financial report of fiscal year 2012/13 to Sebon. 

The capital market regulator puts the list of companies on its website by marking red color to the companies not submitting their report, yellow to the companies submitting their report late and green to the companies submitting their report on time. 
Republica Files 

According to the Corporate Reporting Status of Sebon, which is posted on its website, Kist Bank, Nepal Bangladesh Bank Ltd, Nepal Bank Ltd, NCC Bank, Apex Development Bank, Yak and Yeti Hotel, National Hydropower Company Ltd and Nepal Doorsanchar Company Ltd, among others, have not reported their reports to Sebon yet. Out of 22 listed insurance companies, only two have submitted their reports to Sebon. 

Raj Kumar Timilsina, president of Investors Forum Nepal, said companies failing to submit their report to the regulatory body on time have breached the rights of the investors to know the actual position of the company and decisions taken by them. He accused Sebon officials of trying to exempt such companies from punishment.

“The regulatory body is less concerned about safeguarding the interest of investors. It has become too lenient to take action against those companies, which in turns gives room for the companies to openly flout the rules,” he said. 

“The regulator should not allow trading of shares of such companies.” He further added that Sebon should go to the extent of delisting the companies if they repeatedly fail to adhere to the existing rules.

The Securities Registration and Issue Regulation authorizes Sebon to delist the companies that fail to submit financial reports in time.

Speaking at a media briefing held recently, Sebon Chairman Babu Ram Shrestha said the capital market regulator was taking ´constructive approach´ to take action against companies that are flouting rules.