Security Board guidelines enforced

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KATHMANDU, April 15 - The newly formulated Securities Registration and Issue Approval Guidelines, 2057 came into enforcement Saturday, but, however, will be effective from Monday, when the market opens next.

The guidelines issued by the Securities Board, the regulatory body that oversees the stock market, aims to further encourage the participation of corporate institutions in the nascent domestic capital markets.

In addition to making the process of registration and issuance of securities simple, transparent and more systematic, the directives also aims to create an environment for ensuring easy access of information to the investors for the purpose of making investment decisions.

The new guidelines lays down the conditions that corporate institutions would require to meet prior to making stock issue and the various conditions that it has to fulfill once it makes a public issue.

In addition, the guidelines, with the objective of making the stock market more transparent, has laid great emphasis on information dissemination. In this regard, the guidelines have made it mandatory for corporate institutions, wanting to make public issues, to furnish full details on the profit/loss position, the state of liquidity and to make public its balance sheets prior to doing so.

The focus of the directives has pertained not only on share issue but also on debentures and bonds. Among other, with view to ensuring the safety of creditors, the Securities Board has introduced provisions, which compel corporate institutions to mention the activity where cash from debentures and bonds will be used.

Also, the guidelines makes it compulsory for corporate institutions to explicitly lay down the maturity of the debenture, time, place and mode of paying interest in its prospectus.

The guidelines has stressed upon the authenticity of the information relating to financial, physical, managerial and transaction related matters contained in the prospectus.

Nepal Business Expo concludes 

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KATHMANDU, April 15 - Nepal Business Expo 2001, inaugurated by His Majesty the King at Bhrikuti Mandap on April 10, concluded toady.

The Expo was organized as an authorized trade fair to mark the Industry-Commerce Day and the establishment day of Federation of Nepalese Chambers of Commerce and Industry (FNCCI).

Though about 200 thousand visitors were expected and just over half of it turned over due to unfavourable weather conditions, the Expo has been able to keep its charm intact.

Most exhibitors especially new corporate houses and companies are upbeat of getting an opportunity to showcase their new products, brands and achievements.

Organizers say they hold such fairs for the benefit of both producers and customers.

Binod Bahadur Shrestha, Third Vice-President of FNCCI said that the management is better this year than last year and the participants have also shown keen interest though the rains disturbed.

Participation of new corporate houses including many district chambers, commodity associations and bi-national chambers and introduction of hangar with 58 stalls has made the Expo more attractive, said Bhashkar Rajkarnikar, Chairman of Publicity Committee.

From instant noodles to ice cream and from motorbike to car, the participating companies tried their best to woo the visitors by either offering discounts or something extra.

Bal Krishna Shrestha of Multi-Food Industries says though he participated for brand publicity, the sale is also satisfactory. So is the case of Movenpick Ice Cream, which according to the seller got a very good response from the customers.

Despite low visitors’ turnover, decoratives, kitchen utensils, snacks, toiletries, ready-made garments, physical fitness and health products did a good business. Rakesh Ram Shrestha of Fren’s Enterprises says though marketing is their objective sale of decoratives is very good.

Binod Kumar of Hawkins Cookers Limited believes that participation in the fair promotes business while Ashok Mishra of Yeti International says visitors were becoming aware of physical fitness and were interested in fitness equipment and health products.

Visitors say such fair gives them a chance to see and buy newer products at discounted rates.

Shree Gopal Ranjit of Chhauni believes that expos raise awareness among the visitors. "I came here for observing new products and shopping as generally goods are sold on discounted price", he said.

The Expo with 266 stalls in total had separate pavilions for agricultural products and engineering goods and services. Another major attraction of the Expo was the daily live cultural program.

FNCCI, Nepal Chambers of Commerce, Lalitpur Chamber of Commerce and Industry and Bhaktapur Chamber of Commerce and Industry are organizers and Everest Exhibitions co-organizer and Nepal Engineers’ Association and Agricultural Enterprises Centre are institutional organizers of the event.

Economy, finance and market

By Supa Upadhyay

Domestic money market:

The Average Weighted Discount Rate (AWDR) of 91-day Treasury Bills (TBs) and 364-day TBs further rose by 40 basis points and 22 basis points to 4.33 and 5.13 percent respectively compared to the previous week. The rupee was traded higher at 99.08 and lower at 98.88 for 91-day TBs and higher at 95.35 and lower at 95.05 for 364-day TBs. The NRB had recieved 27 bids worth NPR 1210 million against the notified amount NPR 750 million for 91-day TBs and 33 bids worth NPR 1530 million against tthe notified amount NPR 600 million for 364-day TBs. The repo rate for member banks and institutions have been quoted at 4.83 percent for the trading day April 11 to 17, 2001. The outright purchase facility for banks, institutions and others on TBs is also available. In the regular weekly auction, the NRB is going to issue 91-day TBs worth NPR 760 million and 364-day TBs worth NPR 600 million on April 17, 2001.

Domestic capital market:

The prices of stock further slumped on lack of buying interest. The NEPSE Index-100 opened lower 373.05 slumped further in all consecutive days and finally closed lower at 369.05 for the week, netting a significant lost of 5.82 points. This week trading was estimated at 118694 shares valued NPR 40.9 million compared to 35329 shares valued NPR 31.5 million of previous week. Commercial Banks and Finance copmanies shared 55.16 percent and 41.77 percent of traded amount. This week, the index of production sector remains unchanged at their previous price. Commercial Banks, Hotel Sector, Finance/Insurance lost while business sector and other sector improved. This week brokers had quoted the prices of 57 companies on the trading board but only 41 companies were traded. Out of fourty-one traded companies, sixteen companies improved, twenty-one companies lost and four companies remained unchanged at their previous prices. Nepal Bank Ltd, Nabil Bank, Nepal Grindlays Bank, Nepal B’desh Bank, Bank of Kathmandu, NIC Bank, Taragaon Regency Hotels, Necon Air, Sagarmatha Insurance, Nepal Share Market and Lumbini Finance were able to trade in five working days.

Forex round-up:

The dollar witnessed weaker against Sterling and JPY over the week. The Euro, however, could not stand at its previous week’s level 0.90 on the expectation of 50 bps rate cut in EC countries.

The INR ended sharply weaker as dollar demand from importers and banks picked up following further falls in the stock market and fears foreign investment inflows could reduce.

The NPR also buyed by the INR depreciated 25 paisas against the dollar over the week.

Nepal in Travel Mart 2002

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KATHMANDU, April 15 - Travel Mart 2002 is to be held from 9-12 April next year in Singapore at the Singapore International Exhibition and Convention Centre (SIECC).

According to a press release issued here today, Nepal will be the Feature Country and Adventure Tourism and Feature Product for the 25th PATA Travel Mart 2002.

PATA Travel Mart 2001 took place from April 3-6 at the SIECC, says the release.

Besides the Nepal Tourism Board and Royal Nepal Airlines Corporation, the Travel Mart 2001 was participated in by 18 other companies from the private sector under the coordination of PATA Nepal Chapter, says the release.

Altogether 286 buyers from 49 countries met with 262 seller companies from the Asia-Pacific region. This year’s Mart managed to attract 96 new buyers including an increase in representation from Middle East Countries, the release says.