Nepal Rastra Bank (NRB) -- the central monetary authority -- has already allowed the bank and financial institutions (BFIs) to reduce their promoters shares to 51 percent. BFIs had long been demanding that they be allowed to convert their promoter shares into public shares by getting the proposal for the same approved by the general body meeting.[break]
However, Securities Board of Nepal (Sebon) - the capital market regulator - has been refusing to allow BFIs sale their promoters without making IPO-like public announcement.
“Disputes over conversion of promoter shares into public shares have finally ended,” Dhruba Timilsina, deputy director of Sebon, told Republica. He also informed that Sebon has permitted Ace Development Bank to convert its promoters shares into public shares though public call.
Ace has received permission to convert 675,000 units of promoter shares into public shares to bring down the share ownership of promoters in the bank to 51 per cent from 60 percent.
Similarly, Butwal Finance, Capital Merchant Banking and Finance and International Leasing and Finance Company have also applied at Sebon to convert their 73,770 units, 841,583 units and 4.82 million units of promoter shares respectively into public shares.
Nepal Awash Vikas Bitta Company and Nepal Investment Bank have also sought Sebon´s nod to sell 145,200 units and 2.3 million units of promoters shares respectively among promoters.
Related story
Conversion check
