KATHMANDU, JAN 14: Nepal Stock Exchange (NEPSE) has suspended share transactions of the Infrastructure Development Bank (IDB) in charge of submitting inconsistent capital plans to the central bank and NEPSE.[break]
A statement issued by the NEPSE said the bank in its future capital-raising plan submitted to the NEPSE mentioned that it would raise its capital to Rs 640 million by issuing 1:3 right shares in the 2007/08 fiscal year, and another 1:1 right issue in the 2008/09 fiscal year.
However, Nepal Rastra Bank (NRB), the central bank of the country, requested the NEPSE take legal action after the NRB came to know that the capital plan it received from the bank was entirely different to what it had submitted to the NEPSE.
NEPSE has decided to suspend the bank´s share transactions, as such deliberate flow of wrong information can misguide the share market, thereby risking the general public´s investments, according to its statement.
NEPSE had enlisted eight hundred thousand IDB shares each with a book value of Rs 100.
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