Shares of Capital Merchant Banking resumed for manual transactions after 7 years

The stock of Capital Merchant Banking and Finance Limited(CMB) has been resumed for manual transaction as per the direction of Nepal Rastra Bank.

The shares of CMB were last traded on Jestha 24, 2068 after which the transactions were suspended after the company was declared troubled by the Rastra Bank.

Nepal Rastra Bank had found several discrepancies in the company’s financial statements. During inspections, NRB also found that most of the deposits of the company was embezzled, while quality of most of the credit was inferior and recovery of these loans seemed almost impossible.

As the company was declared as ‘troubled’, the company was restricted from opening new branch offices, extending loans and dividends, and working as a guarantor. This status also prevents the company from raising salary and allowances of staff, while it has to take regulator´s permission to hire new employees or promote existing staff members.