Nirmal Pradhan and Shankar Kumar Shrestha — the duo who sold non-transferable shares of Nepal Bangladesh Bank — have claimed to have compensated investors after being directed by the regulators to do so within May 25.
“The duo have communicated in writing with the stock exchange that they have purchased the shares equivalent to those stuck
in the blank transfer state,” informed Managing Director of Nepal Stock Exchange (Nepse), Sitaram Thapaliya.
“However, we have yet to verify from the investors themselves and the brokers if the former have been compensated,” he added.
To verify the purchase and compensation, Nepse has even posted a notice on its website asking the brokers and investors who do not
receive the compensation of Nepal Bangladesh Bank’s shares from the duo to contact the stock exchange by May 23 — the deadline.
According to the stock-brokers, Pradhan had purchased NB Bank’s shares on Monday to compensate some 600 investors, but the shares have yet to be paid for. According to Nepse’s trading rules, the settlement should have been concluded by today.
“Today, the brokers were supposed to receive the amount required to pay for the shares purchased for settlement, but we did not receive the money,” informed President of Stock Brokers’ Association of Nepal, Narendra Raj Sijapati.
In May 13, Securities Board of Nepal — the capital market regulator — had asked Nepse to get the investors compensated by May 23.
The duo are accused of unlawfully selling shares to some 600 investors. Investors who bought those shares back in May 2013 are yet to receive the share certificates. Pradhan had sold 12,940 units and Shrestha had sold 82,030 units of the bank’s shares that have stayed in blank transfer state since past one year.
The duo are required to provide the buyers 94,970 units of the bank’s shares as compensation in place of the shares that they sold, which have not been transferred.
Since Kathmandu District Court has stayed the ownership transfer of the original shares sold by Pradhan and Shrestha, the duo have to buy the equivalent amount of the shares to compensate the buyers who bought the bank’s shares a year ago and transfer those shares in the names of the buyers.
source: the himalayan times,22 may 2014
LINK
“The duo have communicated in writing with the stock exchange that they have purchased the shares equivalent to those stuck
in the blank transfer state,” informed Managing Director of Nepal Stock Exchange (Nepse), Sitaram Thapaliya.
“However, we have yet to verify from the investors themselves and the brokers if the former have been compensated,” he added.
To verify the purchase and compensation, Nepse has even posted a notice on its website asking the brokers and investors who do not
receive the compensation of Nepal Bangladesh Bank’s shares from the duo to contact the stock exchange by May 23 — the deadline.
According to the stock-brokers, Pradhan had purchased NB Bank’s shares on Monday to compensate some 600 investors, but the shares have yet to be paid for. According to Nepse’s trading rules, the settlement should have been concluded by today.
“Today, the brokers were supposed to receive the amount required to pay for the shares purchased for settlement, but we did not receive the money,” informed President of Stock Brokers’ Association of Nepal, Narendra Raj Sijapati.
In May 13, Securities Board of Nepal — the capital market regulator — had asked Nepse to get the investors compensated by May 23.
The duo are accused of unlawfully selling shares to some 600 investors. Investors who bought those shares back in May 2013 are yet to receive the share certificates. Pradhan had sold 12,940 units and Shrestha had sold 82,030 units of the bank’s shares that have stayed in blank transfer state since past one year.
The duo are required to provide the buyers 94,970 units of the bank’s shares as compensation in place of the shares that they sold, which have not been transferred.
Since Kathmandu District Court has stayed the ownership transfer of the original shares sold by Pradhan and Shrestha, the duo have to buy the equivalent amount of the shares to compensate the buyers who bought the bank’s shares a year ago and transfer those shares in the names of the buyers.
source: the himalayan times,22 may 2014
LINK
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