Securities Board issues new guidelines

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KATHMANDU, March 21 - Securities Board, the regulatory authority overseeing the Nepal Stock Exchange (Nepse), made public the New Securities Registration and Issue Approval Guidelines, 2057 today, which will come into effect from April 14.

The guidelines have been prepared to contain unwarranted fluctuations in the stock market, in addition to protection of investors’ rights, it was informed at a press conference organized by the Board here today.

Speaking on the occasion, Chairman of the Board, Damber Dhungel, said that changes were made to update the old guidelines of 2051. He hoped that the implementation of the new guidelines would bring stability in the stock market.

Dhungel also hoped that the implementation of the new guidelines would bring more transparency and accountability in the stock market and simplify procedures of share issuance.

According to the new guidelines, except for financial institutions, and domestic and joint venture companies operating at profits for two consecutive years, all other companies must have a history of one-year management and audited accounts before issuing public shares.

In addition, the guidelines stipulates that companies can issue shares at premium, but only after justifying their need to the board. Also the new provisions require capital gearing ratio to be 7:3 before the maturity of debentures.

Recognising the difficulty faced by small investors, who normally invest without any appraisal of the securities, the guidelines mentions that securities analysts or firms involved in profit forecasts must inform the investors of the risk involved in securities they invest in. Similarly, the guidelines has made it imperative for institutions to issue shares within two months of obtaining permission from the board. Also companies must provide investors with a financial statement during share issue and should also mention the possible changes that may take in the statement in the future.

The minimum number of shares for which applications would be received has been increased to 50 from the previous ten, with a view to reducing the number of share applications. Finally, among others, the guidelines require share distribution to take place within a maximum of 90 days after the closure of the date of application.

WHO/WTO concerned on LDCs’ access to drugs

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KATHMANDU, March 21 - A workshop on how to improve poor countries’ access to essential drugs is to be convened by the World Health Organization (WHO) and World Trade Organization (WTO) Secretariats in early April.

According to a press release received here today, the Norwegian Foreign Affairs Ministry is hosting the workshop on "Differential Pricing and Financing of Essential Drugs", and will be held at Høsbjør, Norway from 8 to 11 April 2001. The Global Health Council, a broad-based US non-government organization in the health-care field, is organizing the event, the release says.

The workshop will be a meeting of experts, and not an intergovernmental conference. It will provide an opportunity for the experts to exchange views on an important subject that has received a considerable amount of public attention. It will explore how to achieve public health objectives within the framework of WTO trade and intellectual property rules.

It will look at the full range of obstacles that developing countries face in obtaining essential drugs, both patented and generic. A main focus will be on the questions of differential pricing and financing, says the release. Differential pricing - sometimes called "tiered" or "equity" pricing - means charging lower prices in poorer countries, explains the release.

The workshop will explore the conditions that would provide a win-win situation - one that would benefit everyone involved. Among the questions that will be examined in detail are how to prevent low-priced drugs from leaking back from poor countries to rich ones. On the financing side, the question is how much is needed to purchase essential drugs through international and domestic sources, and how it can be raised, according to the release.

The workshop will bring together about 50 experts from industrialized and developing countries. They will come from research-based and generic manufacturers, governments, intergovernmental organizations, non-governmental organizations concerned with international health and consumer rights, and academics and consultants who are expert in drugs, financing, pricing or trade policy, the release concludes.

Workshop on regional power trade held

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KATHMANDU, March 21 - Nexant Inc., under the United States Agency for International Development (USAID) funded South Asia Regional Initiative for Energy (SARI/E), organized a one-day workshop on Benefits and Challenges to Regional Power Trade Monday.

According to a press release issued here today, senior level technical professionals representing power utilities and trade organizations from Nepal, Bangladesh, Sri Lanka, Bhutan and India participated in the workshop.

The participants deliberated upon the current situation and the constraints in cross-border trade in electric power among the participant countries, says the release.

The issues raised and discussed included: benefits from cross-border trade in energy among the South Asian Countries; advantages of optimal utilization of energy resources; the positive impact on environmental aspects as a result of development of clean sources of energy; constraints in regional energy trade due to the lack of requisite infrastructure; and the need for evolving appropriate policies and passing of legislation at the respective national levels.

According to the release, SARI energy program is a US government multi-agency effort which aims to promote cooperation and to support the development of energy, trade and exchange among South Asian countries where there is a tremendous potential for sharing resources, concludes the release.

Nepal Business Expo 2001 soon

KATHMANDU, March 21 (PR) - Federation of Nepalese Chambers of Commerce and Industry (FNCCI), Nepal Chamber of Commerce, and Bhaktapur and Lalitpur Chambers of Commerce and Industries, in association with Nepal Engineers Association and Agro-Enterprise Centre, are to hold Nepal Business Expo 2001 from April 10-15, 2001.

The Business Expo is being organized on the occasion of the Industry and Commerce Day 2001, which falls on April 10, and would be held every year henceforth to mark the important day.

According to a press release issued at a press conference here Tuesday, the event managers of the occasion, Everest Exhibitions, has also merged its consumer and trade fair Tradex 2001 into the new event. Similarly, Nepal Engineers Association has also merged the Engineering Expo, the first of its kind, into the event.

GeFONT, NTUC for fresh talks to end TSC row

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KATHMANDU, March 21 - The General Federation of Nepalese Trade Union (GeFONT) and Nepal Trade Union Congress(NTUC), the two major trade unions today announced that they would initiate fresh talks to end the ten per cent service charge row between the hoteliers and their employees.

GeFONT, a pro-CPN-UML trade union and NTUC, a pro-NC trade union, are the two influential trade unions have joined hands to resolve the problem through dialogues.

Top trade unionists expressed the views that any problem could be solved through talks provided the government plays an honest role. Mukund Neupane, Chairman of GeFONT, said that the ten per cent service charge does not discourage tourists and does not affect the hoteliers either. He said, replying a question, that the unionists would file a case at the court if the problem could not be solved through renewed talks.

Laxaman Basnet, President of NTUC, said that imposition of Essential Service Act (ESA) cannot solve the problem. He said some are saying that the facility demanded by the hotel employees would be contagious, but it is nothing more than a rumour.

He expressed the belief that the problem would be solved through talks. "To be organized, to put forth their demands and to stage strike to get their demands fulfilled are the natural rights of the employees, but the government has hit the spirit of democracy by imposing the ESA to quell the agitation of the employees", states a press release issued on the occasion.

Army seize Jeep, goods at Bhairahawa customs

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Bhairahawa,March 21-Just two days after the deployment of army in Bharahawa Customs, the army patrolling team seized a Indian Jeep and other goods inside Nepal and deposited it at the customs office Wednesday.

According to the Customs office TATA Sumo parked some 10 Kilometers North-East from the customs post was seized by the army, after the concern persons could not produce necessary documents.

Likewise the army patrolling also seized 8 cartons of chewing tobacco and, some motor parts entering Nepal illegally. The price of the seized goods was not known immediately as Customs had not assessed the cost of the goods.

Banned tobacco product seems to enter in large ammounts via this customs.

Customs chief Ganesh Prasad Shrestha while talking to the Kathmandu Post informed that the cross border smuggling has been reduced to a large extent after the army deployment.

Army patrolling is done regularly around the area since last two days and it has helped to reduce the nuisance at the night time too, locals say.

Kumari Bank, Temenos Holdings sign agreement

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KATHMANDU, March 21 - The Kumari Bank Limited, a private sector bank, signed an agreement with Temenos Holdings NV. Netherlands Antilles on Globus banking software amid a function here today.

Speaking on the occasion, Chairman of the Bank Noor Pratap JB Rana said that the Globus banking software, which the bank is going to introduce soon, is one of the best banking softwares of the world.

Rana also said that the bank is coming into operation in the near future and it has already selected employees and has made all necessary arrangements for its operation.

Clive Knott, Vice President of Temenos Holdings, said that the banking environment in Nepal has become more liberal which is helping the banks grow. He said that Globus is the No. 1 software for the past three years which is being used in 270 banks all over the world and the Kumari Bank has made very good decision by choosing Globus. Surendra Bhandari, CEO of the Bank said that they will provide banking service to all the segments of the economy with quality management.

He also said that the bank is soft launching by the second week of April and is coming into full operation after one and a half months. He also said that they will offer internet and tele-banking facilities within three months of its operation.