NEPSE Gives Approval To Nagarik Stock Dealer Company To Trade Shares Of Additional Listed Companies

The Nepal Stock Exchange (NEPSE) has allowed Nagarik Stock Dealer Company to trade shares of additional listed companies.

Previously, there were only 39 companies on the entire list of companies in which Nepal's very first stock dealer - Nagarik Stock Dealer could invest. The list includes -  26 commercial banks, 7 development banks, 4 microfinance companies, one Hotel (Taragaon Regency Hotel), and Nepal Doorsanchar Company Limited from the "Others" sector.

After the approval from the NEPSE, Nagarik Stock Dealer can invest in other additional companies, provided such companies have been profitable for the previous three years, have 10,000 shareholders, has a paid-up capital of more than Rs. 20 Crores, and has traded on at least 80% of a year's trading days.

Additionally, a compiled list of the companies that Nagarik Stock Dealer wishes to invest in should be submitted to NEPSE. Based on the list of listed companies submitted by the stock dealer, NEPSE has the full authority to decide to allow trading if it deems fit.

Nagarik Stock Dealer Company is a subsidiary company of Citizen Investment Trust (CIT). CIT has an investment of Rs.2.50 Arba (51% stake) while Nepal Telecom and Nepal Reinsurance Company have an investment of Rs.50 Crore (10% stake) and Rs.45 Crore (9% stake) on the market maker respectively.