A day-long dialogue to settle the issue of non-transfer of ownership of Nepal Bangladesh Bank (NBB) shares sold by prominent investor Nirmal Pradhan ended inconclusively on Sunday.
Owing to a court order, purchasers of the shares sold by Pradhan have been unable to transfer ownership of those shares , leaving them with fear that they might be deprived of the rightful dividend announced by the bank.
Out of 220,000 shares sold, ownership transfer of only 118,000 units has been completed so far. As a result, around 1,000 investors have been affected. As Pradhan sold shares to people related to NB Group who had put those shares as collateral to secure loans to pay off bank’s liabilities, the group succeeded to get a stay order from the court on ownership transfer of those shares .
During the dialogue on Sunday, Pradhan verbally assured that he could buy back the sold shares whose ownership could not be transferred. “As long as we get such commitment in writing, a row can be considered to have been settled,” said Sitaram Thapaliya, general manager of Nepse.
He said Nepse was in favour of those purchasing shares should get the ownership transferred and the dividend announced by the bank should distributed to them. Nepse has already directed the bank to put its annual general meeting (AGM) on hold.
Thapaliya said that Nepse had suggested to transfer ownership of shares from the new investors, provide them with new shares or compensate them by buying back the sold shares .
“We have made it clear that the NBB cannot hold its AGM until this issue is settled,” he said. The NBB has announced providing the 10 percent stock and 7 percent cash dividend which has made this issue complicated.
The Securities Board of Nepal has also halted transaction of the shares that were in the name of Nirmal Pradhan, his sons Nischal Pradhan and Nitesh Pradhan and his wife Rukmini Pradhan.
Similarly, the regulator has also put on hold transaction of shares held by Shankar Bahadur Shrestha, Laxmi Bahadur Shrestha, Jit Bahadur Shrestha and their family members. A Sebon taskforce is also investigating the case.
source:the kathmandu post,10 march 2014
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Owing to a court order, purchasers of the shares sold by Pradhan have been unable to transfer ownership of those shares , leaving them with fear that they might be deprived of the rightful dividend announced by the bank.
Out of 220,000 shares sold, ownership transfer of only 118,000 units has been completed so far. As a result, around 1,000 investors have been affected. As Pradhan sold shares to people related to NB Group who had put those shares as collateral to secure loans to pay off bank’s liabilities, the group succeeded to get a stay order from the court on ownership transfer of those shares .
During the dialogue on Sunday, Pradhan verbally assured that he could buy back the sold shares whose ownership could not be transferred. “As long as we get such commitment in writing, a row can be considered to have been settled,” said Sitaram Thapaliya, general manager of Nepse.
He said Nepse was in favour of those purchasing shares should get the ownership transferred and the dividend announced by the bank should distributed to them. Nepse has already directed the bank to put its annual general meeting (AGM) on hold.
Thapaliya said that Nepse had suggested to transfer ownership of shares from the new investors, provide them with new shares or compensate them by buying back the sold shares .
“We have made it clear that the NBB cannot hold its AGM until this issue is settled,” he said. The NBB has announced providing the 10 percent stock and 7 percent cash dividend which has made this issue complicated.
The Securities Board of Nepal has also halted transaction of the shares that were in the name of Nirmal Pradhan, his sons Nischal Pradhan and Nitesh Pradhan and his wife Rukmini Pradhan.
Similarly, the regulator has also put on hold transaction of shares held by Shankar Bahadur Shrestha, Laxmi Bahadur Shrestha, Jit Bahadur Shrestha and their family members. A Sebon taskforce is also investigating the case.
source:the kathmandu post,10 march 2014
LINK
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