Muktinath Bikas Bank Proposes 10.26% Dividend for FY 2079/80; Trading Halted as Regulatory Breach Unfolds

The Nepal Stock Exchange (NEPSE) has taken a decisive step by suspending the trading of Muktinath Bikas Bank Limited (MNBBL) following a breach of NEPSE rules. The suspension comes in the wake of MNBBL's recent board meeting held on Poush 5 at 2:30 PM, during trading hours, a violation of NEPSE regulations.

According to the recent notice published in NEPSE, the 311th meeting of MNBBL's board of directors convened to discuss the dividend declaration for the Fiscal Year 2079/80. The bank proposed a 10.2632% dividend, comprising 9.75% bonus shares and 0.5132% cash dividend (including tax) on the paid-up capital of Rs. 6.42 arba. However, the crucial misstep occurred as the meeting was conducted during trading hours, contrary to NEPSE's stipulated regulations.

As per Regulation 22(1)(d) of the Securities Listing Regulations, 2075, any notices, information, or decisions influencing shares' prices must not be taken during the time of trading. The untimely meeting and subsequent decisions by MNBBL led to a direct contradiction of NEPSE rules, prompting the stock exchange to suspend the trading of MNBBL. Now the company is mandated to provide NEPSE an explanation within 3 working days regarding the breach.