Nepse that unveiled the new list on Thursday announced that five development banks, two insurance companies, 10 finance companies, two hotels, one hydropower and a company belonging to Others group performed consistently over the last three years, and hence, were upgraded into the bloc of the best performers. [break]
Likewise, the stock exchange has removed three companies from the category A companies after they failed to adhere to the norms of the category. Those removed from the list were United Insurance, Bhajuratna Finance and Everest Finance Limited.
“The number of companies in category A that can be rated as top companies has now jumped to 95,” says a press statement.
With the latest revision in the list, country´s sole secondary market now has 15 commercial banks, 43 finance companies, 2 hydropower and hotels each, 1 manufacturing and other companies each, 11 insurance and 20 development banks rated as category A company.
Nepse has been categorizing the companies into category A based on the criteria set by the Share Listing Bylaw. Under it, Nepse rates companies having paid up capital of at least Rs 20 million, shareholder base of more than 1,000, earning profit for three consecutive years and submitting audited financial reports within the six months of the fiscal year end as category A companies.
Nepse has been announcing such categorization since 1996/97. In 1996/97, there were only 7 companies in the list. While the number climbed to 15 in the second year, the list included as many as 78 companies by 2008/09.
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