Latest NEPSE News & Share Market Updates
Rasuwa and Nuwakot Floods: A Preliminary Assessment of Hydropower Project Impacts
Nepal's vital hydropower sector has been dealt a significant blow following severe flooding originating from the China side, which has ravaged the key hydroelectric development regions of Rasuwa and Nuwakot districts. A preliminary assessment reveals a substantial impact on both operational and under-construction projects, raising concerns among investors and stakeholders about potential energy supply disruptions and financial repercussions. These two districts are strategically important for Nepal's energy landscape, hosting a considerable number of hydropower projects that contribute significantly to the national grid and are crucial for meeting the country's growing energy demands. The recent deluge, characterized by its intensity and cross-border origin, has created an unprecedented challenge for the energy infrastructure in these areas, highlighting the vulnerability of critical assets to natural disasters. According to initial reports, a total of nine operational hydropower projects, collectively generating an impressive 359 megawatts (MW) of electricity, are located within Rasuwa and Nuwakot. Furthermore, five critical projects currently under construction, with an anticipated combined capacity of 394 MW, are also situated in these flood-affected zones. The extent of the damage to these facilities is still being assessed, but the preliminary status indicates a severe disruption to their operations and development timelines, which could have cascading effects on Nepal's energy security and economic stability. In Rasuwa district, a hub for several large-scale hydropower initiatives, the situation is particularly concerning. Among the projects identified, the 216 MW Upper Trishuli-1 project, a major undertaking currently under construction, faces significant uncertainty regarding its completion schedule and potential cost overruns. Operational projects like the 111 MW Rasuwagadhi Hydropower Project, the 78 MW Sanjen Khola, the 5 MW Mailung Khola, the 20 MW Langtang Khola, and the 22 MW Chilime Hydropower Project, which collectively contribute 236 MW to the national grid from five facilities, are all under scrutiny. Additionally, the 120 MW Rasuwa-Bhotekoshi and the 6.42 MW Upper Mailung-A projects are also under construction, adding to the list of affected assets. The disruption to these operational plants could lead to immediate power shortages, while delays in under-construction projects could impact future energy security and investment returns, potentially affecting the profitability of their developers and shareholders. Nuwakot district, another critical region for hydropower development, has also borne the brunt of the floods. Four operational projects here, including the 24 MW Trishuli Hydropower Project, the 14.1 MW Devighat Hydropower Project, the 60 MW Upper Trishuli-3A, and a 25 MW Solar project (which, though not hydro, is located in a hydro-centric region and could face logistical or infrastructure challenges), contribute a total of 123 MW. The 37 MW Upper Trishuli-3B and the 15.6 MW Middle Trishuli Ganga projects, both under construction, are also within the affected areas. The combined impact on these projects in Nuwakot, particularly those already generating power, could further strain the national energy supply, necessitating contingency plans for power distribution and potentially increasing reliance on alternative, often more expensive, energy sources. For investors, this preliminary assessment signals a period of heightened volatility and uncertainty in the hydropower sector. Companies with stakes in these projects may face significant financial setbacks, including revenue losses from halted operations, increased costs for repairs and reconstruction, and potential delays in project completion, leading to cost overruns. The broader NEPSE hydropower index has already shown signs of distress in response to the general news of the floods, and this detailed list of affected projects is likely to intensify investor concerns, prompting a re-evaluation of risk profiles for hydropower investments. The government and project developers are expected to undertake comprehensive damage assessments in the coming days and weeks. The immediate focus will be on restoring critical infrastructure, ensuring the safety of personnel, and evaluating the financial implications. The long-term recovery will depend on the extent of structural damage, the availability of resources for reconstruction, and the effectiveness of insurance claims. This incident underscores the inherent risks associated with investing in infrastructure projects in geologically sensitive and disaster-prone regions, highlighting the importance of robust risk management and contingency planning. Stakeholders will be closely monitoring official updates for a clearer picture of the damage and the projected timelines for recovery and restoration, which will be crucial for informed investment decisions.
ICRA Nepal Elevates Mahalaxmi Bikas Bank's Issuer Rating to [ICRANP-IR] BB, Signifying Moderate Default Risk
ICRA Nepal Limited, a leading credit rating agency in Nepal, has recently announced an upgrade to Mahalaxmi Bikas Bank Limited's (MLBL) issuer rating, reaffirming it at [ICRANP-IR] BB. This significant development indicates that the development bank now carries a moderate risk of default in meeting its financial obligations on time. For investors and stakeholders, this rating provides a crucial benchmark for assessing the bank's overall creditworthiness and financial stability. An issuer rating, as clarified by ICRA Nepal, reflects the holistic credit profile of a company, rather than being assigned to any specific debt instrument. It offers a comprehensive view of the entity's capacity to honor its financial commitments across all its obligations. The [ICRANP-IR] BB rating falls within the 'moderate risk' category, suggesting that while the bank's ability to meet its financial obligations is considered adequate, it may be susceptible to adverse changes in economic conditions or specific industry challenges. This rating is a step above the 'high risk' categories and indicates a relatively stable, albeit not entirely robust, financial standing. The credit rating system employed by agencies like ICRA Nepal is designed to provide transparency and aid decision-making for various market participants, including investors, lenders, and depositors. Ratings typically range from high safety (e.g., AAA) to default (e.g., D), with intermediate categories like 'BB' providing nuanced insights. ICRA Nepal also utilizes modifiers such as a “+” or “–” sign to denote relative strength within a particular category. For instance, a BB+ rating would signify one notch higher strength within the 'BB' category, implying a slightly lower risk profile than a plain BB, while a BB- would indicate a slightly higher risk. The current reaffirmation at a solid 'BB' suggests a stable outlook within this moderate risk band for Mahalaxmi Bikas Bank. For Mahalaxmi Bikas Bank, this rating upgrade is a testament to its efforts in managing its financial health and operational efficiency. While the specific factors leading to this reaffirmation are not detailed in the initial announcement, credit rating agencies typically evaluate a multitude of aspects for financial institutions. These often include the bank's asset quality, particularly its non-performing loan (NPL) ratios, capital adequacy, profitability metrics, liquidity position, and the strength of its management and governance practices. The bank's market position, its branch network, and the competitive landscape within the Nepalese development banking sector also play a crucial role in shaping its credit profile. From an investor's perspective, a 'BB' rating, while not in the highest echelons of creditworthiness, provides a foundational understanding of the risk associated with investing in MLBL's equity or debt instruments. It suggests that the bank has demonstrated a reasonable capacity to manage its finances, but investors should remain vigilant regarding broader economic trends and sector-specific developments that could impact its performance. This rating can influence the bank's cost of borrowing, its ability to attract institutional funding, and ultimately, its growth trajectory. It serves as a vital piece of information for those looking to diversify their portfolios within the Nepalese financial market. In conclusion, ICRA Nepal's reaffirmation of Mahalaxmi Bikas Bank's issuer rating at [ICRANP-IR] BB underscores its moderate risk profile in meeting financial obligations. This rating is a critical indicator for all stakeholders, reflecting the bank's overall creditworthiness and providing a benchmark for financial assessment. As the Nepalese financial sector continues to evolve, such independent credit assessments remain indispensable tools for fostering transparency and informed decision-making among investors and the broader market.
Nepal Life Insurance Holds Two-Day Business Excellence Conference in Kathmandu
Nepal Life Insurance Company Limited concluded its two-day Business Excellence Conference held under the theme "Lead, Aspire, Evolve," at Hotel Yak & Yeti from Bhadra 01 to 02, 2083, with over 250 sales and marketing employees from across the country in attendance. The conference was inaugurated by senior directors Kamlesh Kumar Agrawal, Bimal Prasad Dhakal, Prabin Prakash Khatri, and CEO Praveen Raman Parajuli. Agrawal noted that the company marked 25 years in operation and have collected over Rs 13 billion in First Premium Income (FPI) in FY 2082/83 which is a new milestone. CEO Parajuli thanked employees for the year's performance and called for greater discipline and commitment to meet FY 2083/84 targets. The event concluded with certificate distribution and awards across 14 categories recognising top-performing employees, branches and sub-branches for FY 2082/83.
Flood from Rasuwa sweeps away around 60 houses in Nuwakot's Trishuli Bazaar, Damage to Hydroelectric Power
A flood in the Bhotekoshi River from Rasuwa has swept away around 60 houses in and around Trishuli Bazaar in Nuwakot, while the Devighat area has also been affected. Chief District Officer of Nuwakot, Shambhu Prasad Regmi, said that no human casualties have been reported so far, as local residents along the Trishuli River moved to safer locations immediately after receiving advance warning of the flood. According to him, detailed information on the extent of damage is yet to be compiled. The flood has swept away several houses in Trishuli Bazaar as well as two concrete bridges over the Trishuli River. The Trishuli and Devighat hydropower projects have also been damaged by the flood. Similarly, three blocks of a 25-megawatt solar plant and its substation have been swept away.
Rasuwa Floods Trigger Significant Downturn in Hydropower Stocks, Index Plummets Over 2.5%
Nepal's burgeoning hydropower sector faced a significant setback today as the NEPSE Hydropower Index experienced a sharp decline of over 2.5%, or 90 points, settling at 3,576.50 by late morning. This downturn was directly attributed to widespread investor concern following reports of a major flash flood in Rasuwa district, which has reportedly caused substantial damage to hydropower projects and critical infrastructure in the region. The market's reaction was swift and pronounced, with several key hydropower companies seeing their stock values plummet. Rasuwagadhi Hydropower Company Limited (RHPL), which operates a significant 111 MW project in Rasuwa, led the decline with a staggering 13.42% drop. Similarly, Chilime Hydropower Company Limited (CHCL), responsible for a 22.1 MW plant in the same district, saw its shares fall by 7.39%. Other companies with operational presence in or near the affected areas, such as TVCL (Trishuli Jal Vidhyut Company Limited), also experienced significant losses, with its stock falling by 6.70%. The catalyst for this market turmoil was a flash flood that originated from the Tibet side and entered the Bhote Koshi River in Rasuwa early Wednesday morning. Initial reports indicate extensive damage to settlements and hydropower projects in the Syabrubesi and Timure areas. While the full extent of the damage is still under assessment, specific projects, including those operated by Chilime Hydropower, have already reported adverse impacts. Authorities have issued high-alert warnings to communities situated along the Bhote Koshi and Trishuli rivers, underscoring the severity of the situation. Investor sentiment has been severely impacted by the prevailing uncertainty surrounding the extent of the damage. The lack of definitive information regarding the operational status and potential recovery timelines for affected projects has fueled anxiety, leading to a broad sell-off in hydropower stocks. This situation highlights the inherent risks associated with investing in infrastructure projects located in geologically sensitive and disaster-prone regions like the Himalayas. For a nation heavily reliant on hydropower for its energy needs and economic growth, such natural disasters pose significant challenges. Beyond the immediate market impact, potential long-term consequences include power supply disruptions, substantial repair costs, and delays in project completion, which could ripple through the broader economy. The incident also brings into focus the importance of robust risk management strategies, including comprehensive insurance coverage and resilient infrastructure design, for hydropower developers. As assessments continue, investors are advised to closely monitor official reports from regulatory bodies, company disclosures, and news updates to gain a clearer understanding of the situation. The recovery efforts and the speed at which affected projects can resume full operation will be crucial in determining the long-term impact on the companies involved and the overall hydropower index. Transparency from affected companies regarding damage estimates, insurance claims, and recovery plans will be vital in restoring investor confidence in the coming days and weeks.
Rasuwa Floodwaters Reach Gajuri, Authorities Halt Road Traffic and Begin Evacuations
Floodwaters that caused damage in Rasuwa have reached Gajuri in Dhading, raising concerns among authorities and residents along the river corridor. The unexpected flood reached Gajuri after flowing downstream from Rasuwa, according to information provided by the Muglin Police in Chitwan. Authorities have halted road traffic in the affected area as a precautionary measure. Police have also begun efforts to relocate residents living near the riverbanks to safer locations. Officials are monitoring the situation closely as the floodwater continues to move downstream and have urged residents in vulnerable areas to remain alert and follow safety instructions.
Eastern Hydropower Limited Secures ERC Nod for Significant Rights Issue, Paving Way for Project Completion
Eastern Hydropower Limited (EHPL) has taken a significant step towards bolstering its financial foundation and accelerating project completion, having received preliminary approval from the Electricity Regulatory Commission (ERC) for a substantial rights offering. The company proposes to issue rights shares at a ratio of 1:0.871, meaning existing shareholders will have the opportunity to subscribe to 0.871 new shares for every one share they currently hold. This move, representing an 87.10% rights issue on its current paid-up capital of Rs. 62 crores, is poised to inject crucial capital into the company. The proposed issuance involves 5,400,092.743 units of new shares. Upon successful subscription and allocation, EHPL's paid-up capital is projected to increase significantly to Rs. 1.16 billion. This substantial capital increment is primarily earmarked for two critical objectives: the completion of ongoing hydropower projects and the settlement of outstanding construction-related expenses. The hydropower sector in Nepal is inherently capital-intensive, and companies frequently resort to equity financing, such as rights issues, to fund their ambitious projects and manage their financial obligations. This strategic decision by EHPL underscores its commitment to bringing its projects to fruition and enhancing its operational capacity. The preliminary approval from the ERC is a vital regulatory milestone, signaling that the commission has reviewed and accepted the company's proposal in principle. However, it is crucial for investors to note that the final issuance of these rights shares remains contingent upon receiving formal approval from the Securities Board of Nepal (SEBON). SEBON's rigorous oversight ensures that such offerings adhere to capital market regulations, protecting investor interests and maintaining market integrity. Once SEBON grants its approval, EHPL will proceed with the necessary procedures, including setting a book closure date and issuing a detailed prospectus for the rights offering. For existing shareholders, a rights issue presents both an opportunity and a consideration. While it allows them to maintain their proportional ownership in the company by subscribing to the new shares, those who choose not to participate may experience a dilution of their stake. The funds raised through this rights issue are expected to strengthen EHPL's balance sheet, reduce reliance on debt financing for project completion, and potentially improve its long-term profitability by bringing revenue-generating assets online sooner. As of the latest trading information, Eastern Hydropower Limited's Last Traded Price (LTP) stands at Rs. 317.00. Investors will be closely watching how the market reacts to this development and the eventual pricing of the rights shares, which are typically offered at a discount to the prevailing market price. The successful completion of this rights issue and the subsequent utilization of funds for project development are critical for EHPL's future growth trajectory and its ability to contribute to Nepal's burgeoning energy sector. This capital injection is a clear indication of the company's proactive approach to financial management and its dedication to fulfilling its project commitments.
Nepal Rastra Bank to Collect 90 Billion from BFI's Today, Interest to be Returned after 119 Days
Nepal Rastra Bank (NRB) has announced that it will collect deposits worth Rs. 90 billion from banks and financial institutions through a bidding process today. According to a notice published today, the central bank will collect the deposits for a period of 119 days. The bidding will take place on Bhadra 10 (August 26) through the Online Bidding System at 3 Pm. The interest rate will be decided through the bidding process. The minimum amount for bidding has been set at Rs. 10 crore, while the maximum limit is (In multiples of) 5 Crore, up to the total issue amount. However, institutions can submit multiple bids within the total announced amount. Only licensed ‘A’, ‘B’, and ‘C’ class banks and financial institutions approved by NRB are allowed to take part in the bidding. The deposits collected will be returned along with interest on Poush 08, 2083 (23 December, 2026).
House of Representatives Likely to Hold Brief Meeting Amid Rasuwa Floods
The House of Representatives is preparing to hold a shortened meeting on Wednesday in view of the devastating floods in Rasuwa. The meeting, scheduled for 1:00 p.m. today, is expected to proceed with only an emergency session, while the previously scheduled agenda items may be removed. Discussions are currently underway regarding the revised format of the meeting. Prime Minister’s Question-and-Answer Session May Be SuspendedThe scheduled meeting includes a direct question-and-answer session with the Prime Minister, along with other agenda items. However, lawmakers are discussing suspending the question-and-answer session and not proceeding with the other scheduled business in light of the flood disaster in Rasuwa. Ekaram Giri, Joint Secretary and spokesperson for the Federal Parliament Secretariat, confirmed that discussions are underway to hold a brief meeting focused only on the emergency session. A final decision on the meeting’s agenda and format is expected shortly.
Rasuwa Floods Damage Nine Commercial Bank Branches, Staff Remain Unreachable
At least nine branches of commercial banks operating in the flood-affected areas of Rasuwa have been directly impacted by the devastating floods in the Bhotekoshi River. According to Santosh Koirala, president of the Nepal Bankers’ Association, most of the affected bank branches have either been swept away or suffered extensive damage to their buildings and physical infrastructure. “There were nine bank branches in the flood-affected area, and we estimate that all of them have been damaged. However, communication with the area has been disrupted, making it difficult to collect details of the extent of the damage,” Koirala told Nepal Press. Koirala said more than half of the employees working at the affected branches have yet to establish contact with their respective banks. Some employees have managed to make contact and reported that they are safe, but their offices have been swept away or destroyed, he said. Branches of Nabil Bank, Prabhu Bank, and Global IME Bank, among others, were operating in the affected areas. The Bankers’ Association is attempting to assess the exact extent of damage to the affected branches while coordinating with security agencies to intensify efforts to locate and rescue bank employees. The Bhotekoshi flood that struck Rasuwa on Wednesday morning swept away settlements in the Timure area, also affecting branches of several banks and financial institutions. Banks including Machhapuchchhre Bank, Sanima Bank, Nabil Bank, Laxmi Sunrise Bank, Himalayan Bank, NMB Bank, Global IME Bank, and Nepal Investment Mega Bank had branches in Timure. With settlements swept away and communication services disrupted, banks have been unable to contact employees working at the affected branches. The Nepal Bankers’ Association held an emergency meeting on Wednesday morning to assess the situation and coordinate the response. According to Koirala, the association has already requested the Nepal Army, Nepal Police and other relevant agencies to assist in search and rescue operations. “At present, we have not been able to contact any of the employees. Telephone services have been disrupted, making it extremely difficult to collect details of the damage,” Koirala said. The association is continuing efforts to establish communication with affected employees and obtain further information on the damage to bank branches and infrastructure.
NIC Asia Bank's 10.25% Debenture 2083/84 Successfully Matures and Delists from NEPSE
In a significant development for Nepal's fixed-income market, the "10.25% NIC Asia Debenture 2083/84 (NICD83/84)" has officially been delisted from the Nepal Stock Exchange (NEPSE). This delisting marks the successful maturity of the debenture, signaling the completion of its lifecycle and the fulfillment of its obligations to unitholders. A total of 19,43,698 units of this debenture, which offered an attractive annual return of 10.25%, have now been removed from active trading on the exchange. The debenture is set to mature on the 10th of Bhadra, at which point NIC Asia Bank Limited will commence the process of refunding the principal investment (seed fund) and distributing the final interest payments to all eligible unitholders. This event underscores the reliability and predictability of debentures as a crucial component of a diversified investment portfolio, particularly for those seeking stable returns in a dynamic market environment. Debentures, essentially long-term debt instruments issued by corporations, play a vital role in corporate financing by allowing companies to raise capital from the public. For investors, they offer a fixed rate of return over a specified period, making them a preferred choice for risk-averse individuals and institutions. The 10.25% annual yield provided by NICD83/84 was particularly competitive, reflecting NIC Asia Bank's commitment to offering attractive investment opportunities while securing necessary funding for its operations and growth initiatives. NIC Asia Bank Limited, one of Nepal's leading commercial banks, has a strong track record of financial stability and investor trust. The successful maturity and redemption of this debenture further solidify its reputation as a responsible issuer of financial instruments. Such events are crucial for maintaining investor confidence in the broader Nepali capital market, demonstrating that fixed-income securities issued by reputable institutions deliver on their promises. Unitholders of the "10.25% NIC Asia Debenture 2083/84" are advised that the redemption process for both the principal amount and the accrued interest will be facilitated through NIC Asia Bank's extensive network of branch offices across Nepal. This decentralized approach ensures convenience and accessibility for all investors, regardless of their geographical location. For any detailed inquiries or assistance regarding the redemption process, unitholders are encouraged to contact or visit their nearest NIC Asia Bank branch, including the main office in Thapathali, Kathmandu. This delisting is a routine yet significant event, highlighting the cyclical nature of fixed-income investments. It reinforces the notion that debentures, when issued by strong financial institutions like NIC Asia Bank, offer a secure avenue for capital growth and income generation, contributing positively to the overall health and maturity of Nepal's financial landscape. As the Nepali capital market continues to evolve, the successful conclusion of such instruments provides valuable lessons and builds a stronger foundation for future fixed-income offerings.
PM Balendra Shah Calls Emergency Disaster Council Meeting
Prime Minister Balendra Shah has called an emergency meeting of the National Disaster Council to review and coordinate further action regarding flood at Rasuwa. The emergency meeting will take place at 11:00 AM today at the Office of the Prime Minister and Council of Ministers, according to Press Advisor Deepa Dahal. A meeting of the National Disaster Risk Reduction and Management Authority is currently underway at the Ministry of Home Affairs in Singha Durbar, chaired by Home Minister Sudhan Gurung. The government has shared details regarding its efforts and preparations following a sudden flash flood and landslide in Rasuwa. According to Asim Shah, the political advisor to Prime Minister Balendra Shah, security forces including the Nepali Army, the Armed Police Force, and the Nepal Police have been deployed to lead rescue and relief operations. The National Disaster Risk Reduction and Management Authority is also actively managing the emergency response. To ensure safety, the Chief District Officer has been instructed to move residents living in low-lying downstream areas to safer ground immediately. Additionally, all available helicopters, including those owned by private companies, have been put on standby to assist with urgent rescue and relief missions if needed.
SEBON Issues Broad Directives to Strengthen Nepal’s Capital Market
The Securities Board of Nepal (SEBON) has issued a series of directives to strengthen, modernize, and improve the transparency and reliability of Nepal’s capital market. The directives have been issued as part of the continued implementation of the Capital Market Development Roadmap, 2083, and the capital-market policies and programs for the current fiscal year 2083/84. They are aimed at strengthening the regulation and supervision of securities markets and transactions and improving services for investors. The directives cover the Nepal Stock Exchange (NEPSE), CDS and Clearing Limited (CDSC), securities brokers, merchant bankers, mutual fund scheme managers, depository participants and listed companies. SEBON said the measures were issued under the authority granted by Section 84(1) of the Securities Act, 2063, with the objective of protecting investors and modernizing the securities market. SEBON has instructed NEPSE to conduct an IT audit and Vulnerability Assessment and Penetration Testing (VAPT) of its Trading Management System (TMS) and submit the reports to the board. NEPSE has also been directed to identify problems in the NEPSE Online Trading System (NOTS) and take measures to make the trading platform more modern, efficient, and reliable. Regarding the growing use of artificial intelligence (AI) in securities trading, SEBON has directed NEPSE to suspend AI-based order entry until international practices and Nepal’s specific requirements are studied. NEPSE has also been instructed to inform investors about the measure. The board has further directed NEPSE to facilitate secondary-market trading through mobile applications, improve the effectiveness of the After Market Order (AMO) system, and integrate the Centralized Know Your Customer (C-KYC) system with TMS. SEBON has asked NEPSE to develop additional market indices, including NEPSE 30 and NEPSE High Cap, and establish a system for calculating indices based on free-float shares. To improve investor convenience, CDSC and TMS have been directed to establish API integration and implement an Auto EDIS system. The system is expected to eliminate the need for investors to manually complete the EDIS process after selling shares. CDSC has also been instructed to provide investors with immediate mobile push notifications regarding IPOs, bonus and rights shares, settlements and demat debits. The board has additionally directed authorities to establish real-time reconciliation to address discrepancies between DP holdings displayed in TMS and actual holdings recorded by CDSC. SEBON has also asked relevant authorities to study existing issues related to the trading of fractional shares and submit a report with recommendations for resolving them. SEBON has directed securities brokers to strictly maintain separate bank accounts for clients’ funds and the brokers’ own funds. Brokerage companies must also establish a dedicated grievance-handling unit to address investor complaints. Details of complaints and their resolution must be submitted to SEBON within three working days after the end of each month. The board has also instructed brokers and NEPSE to ensure effective implementation of arrangements for providing investors with their funds within the T+2 settlement period. Merchant bankers have been instructed to ensure that there is no conflict of interest while providing securities issuance-related services. SEBON has also made it mandatory to attach an audit report when submitting applications for new IPO issues. SEBON has introduced a new requirement for major shareholders of listed companies. Any promoter or major shareholder holding 5 percent or more of a company’s shares must notify the concerned company at least 15 days before selling their shares. The listed company must then make the information public through NEPSE. Mutual fund scheme managers have also been directed to improve disclosure on their websites. They must publish approved scheme documents, details of daily sales and repurchases of units, Net Asset Value (NAV) and the number of unit holders. To promote financial literacy and improve investors’ understanding of the capital market, SEBON has instructed NEPSE, CDSC, securities brokers and merchant bankers to organize at least one financial-literacy program every month. SEBON said the measures are expected to improve transparency, strengthen investor protection, modernize market infrastructure and enhance investor confidence in Nepal’s capital market. The full directives issued by SEBON are available on the board’s official website under its circulars section.
Muktinathal Bikas Bank Offers Auto Loans at 5.54% Ahead of NADA Auto Show 2026
Muktinath Bikas Bank Limited has unveiled a special auto loan scheme targeting NADA Auto Show 2026, under which customers can now avail auto loans at an annual interest rate of just 5.54%. According to the bank, the special rate will be offered at Base Rate at 0 percent. Timed to coincide with NADA Auto Show 2026, the scheme will remain in effect until the end of Bhadra 2083, after which the bank's regular prevailing interest rate will apply. The bank has also arranged to disburse auto loans within 24 hours once a customer's loan application and required documents are complete. The bank believes this will help customers purchase their vehicle of choice through a fast, simple and convenient loan facility. The facility will be available through all 176 branches of the bank nationwide. Customers attending NADA Auto Show 2026 and looking to purchase a new vehicle can benefit from this special scheme, the bank said.
Vehicles Bound for Four Districts Stopped in Kathmandu Following Floods and Landslides in Rasuwa
Traffic police have stopped vehicles heading toward four districts from Kathmandu following severe flooding and landslides in Rasuwa. According to Superintendent of Police (SP) Naresh Raj Subedi of the Kathmandu Valley Traffic Police Office, vehicles traveling from Kathmandu to Rasuwa, Nuwakot, Chitwan and Dhading have been halted in the capital. The decision was taken as a precautionary measure amid the flood situation and concerns over road safety in the affected districts. Traffic police have urged travelers to remain alert and avoid unnecessary travel toward areas affected by floods and landslides until conditions improve.
Nepal Army Mobilizes Rescue Teams Following Bhotekoshi Flood
The Nepal Army has mobilized rescue and disaster management teams following flooding in the Bhotekoshi River that affected Timure, Syabrubesi and other areas along the riverbank in Rasuwa. According to the Directorate of Military Public Relations and Information, Army personnel were deployed immediately after receiving information about damage caused by the river’s flooding this morning. Two Nepal Army helicopters have landed at Trishuli Bazaar to support search and rescue operations in the affected areas. An emergency medical team has also been deployed to Trishuli District Hospital to provide immediate medical assistance to those affected by the disaster. Rescue teams from the Dhunche and Trishuli Army barracks have been mobilized to the affected areas. In addition, disaster management personnel with specialized expertise from Brigade No. 6 in Gajuri have also been deployed to support the ongoing emergency response. The Nepal Army is coordinating search, rescue, and disaster management efforts in the affected areas as authorities continue to assess the extent of damage caused by the flooding.
Floods Damage Major Power Infrastructure in Rasuwa, Disrupting Electricity Supply
Severe flooding in Rasuwa today has caused extensive damage to several power plants and transmission networks owned by the Nepal Electricity Authority (NEA), disrupting power supply in Rasuwa and surrounding regions. According to the NEA, key facilities affected by the floodwaters include the Rasuwagadhi, Chilime, and Trishuli-3 'A' hydroelectric power plants, as well as the 220 kV substation at the Trishuli-3 'B' Hub. Additionally, the Trishuli and Devighat power plants, along with local distribution lines, have suffered impacts from the flooding. The disruption across generation, transmission, and distribution systems has led to widespread power outages. The NEA stated that technical teams are making every possible effort to restore electricity as quickly as possible, and it has appealed to consumers to remain patient while repairs are underway.
Flash Flood Hits Bhote Koshi River in Rasuwa, Major Damage Reported
A major flash flood has struck the Bhote Koshi River in Rasuwa district, with significant damage reported in the Timure and Syafrubesi areas. Rasuwa Chief District Officer Narendra Pariyar said he was informed that a sudden and unusually large flood occurred at around 9:15 a.m. on Wednesday. Preliminary information indicates that the flood originated from the Chinese side of the border. Assistant Chief District Officer Dhruba Prasad Adhikari said the sudden surge in the Bhote Koshi River caused substantial damage to the Timure Customs Office and areas of Syabrubesi. “Large floods have come into the Bhote Koshi from the Chinese side. Significant damage appears to have occurred in Timure of Gosainkunda Rural Municipality-2 and Syabrubesi of Ward No. 5,” Adhikari said. Khem Lal Bhusal, Director General of the Department of Customs, said officials in Timure informed the department about the flooding at around 8 a.m. “We have not yet received details of what else has happened. We are trying to determine how many colleagues are there. Six or seven people are in contact, while we have not been able to reach others by phone,” Bhusal said. Officials said efforts are underway to establish contact with people in the affected areas and assess the extent of the damage. Adhikari said authorities in downstream areas had also been alerted due to the unusually large volume of water. “I have informed Nuwakot and Dhading as well. The flood is unprecedented and very large,” he said. He added that he had received information that a major flood had originated from the Tibet side. Authorities have urged residents living along riverbanks and downstream areas to remain highly alert following the sudden rise in the Bhote Koshi River. Residents in riverine areas of Rasuwa, Nuwakot, Dhading, Gorkha and Chitwan have been advised to take precautions and avoid approaching the river. Officials said the exact extent of damage and possible casualties had not yet been confirmed and that further assessment was underway.
Super Madi Hydropower Limited Declares 15.79% Dividend, Sets Book Closure for 17th AGM
Super Madi Hydropower Limited (SMHL) has announced its decision to distribute a significant 15.78947% dividend for the fiscal year 2082/83, a move poised to reward its shareholders and underscore the company's commitment to value creation. This substantial payout, comprising both bonus shares and a cash component, was approved by the company's board of directors during their meeting held on Bhadra 08, 2083. The company has also scheduled its 17th Annual General Meeting (AGM) for Ashwin 01, 2083, where this dividend proposal, among other crucial agendas, will be presented for shareholder endorsement. The proposed dividend structure is particularly noteworthy for investors. SMHL plans to distribute 15% in bonus shares, amounting to a substantial Rs. 34.72 Crores. This allocation of bonus shares is a common strategy employed by companies in Nepal to strengthen their capital base while simultaneously rewarding shareholders without depleting cash reserves. For investors, bonus shares mean an increase in the number of shares they hold, potentially leading to higher future dividends and increased liquidity. In addition to the bonus shares, a 0.78947% cash dividend, totaling Rs. 1.82 Crores, has been proposed specifically for tax purposes. This cash component ensures that shareholders can cover the tax liabilities arising from the bonus share distribution, making the overall dividend package more attractive. The current paid-up capital of Super Madi Hydropower Limited stands at Rs. 2.31 Arba, and this bonus share issuance will lead to a proportional increase in the company's capital base. The 17th Annual General Meeting is slated to take place at Hotel Imperial, Putalisadak, Kathmandu, commencing at 11:00 am. Beyond the pivotal dividend endorsement, the AGM agenda includes several other critical items essential for the company's transparent operation and future direction. Shareholders will be asked to review and endorse the auditor's report, which encompasses the profit and loss statements, comprehensive financial reports, and cash flow reports for the fiscal year 2082/83. This detailed financial scrutiny is a cornerstone of good corporate governance, providing investors with a clear picture of the company's financial health and performance over the past year. Furthermore, the meeting will also address the appointment of an independent auditor for the upcoming fiscal year 2083/84, a crucial step in maintaining financial accountability and regulatory compliance. To facilitate the dividend distribution and AGM participation, Super Madi Hydropower Limited has announced a book closure date starting from Bhadra 23, 2083. This means that only shareholders who have their shares registered in their names by the end of trading on Bhadra 22, 2083, will be eligible to receive the proposed dividend and attend the 17th AGM. Investors are advised to ensure their shareholdings are updated before this critical deadline to secure their entitlement. This dividend announcement from Super Madi Hydropower Limited comes at a time when the Nepalese hydropower sector continues to garner significant investor interest. Hydropower companies, often characterized by stable revenue streams and long-term growth potential, are frequently sought after for their dividend-paying capacity. The decision to issue a substantial portion of the dividend as bonus shares reflects confidence in the company's future earnings and its strategic intent to expand its capital base, which could support future projects or operational enhancements. Such announcements are vital for the NEPSE market, providing positive sentiment and demonstrating the financial health of listed entities. For investors, understanding these corporate actions is key to making informed decisions, especially concerning long-term portfolio planning and wealth accumulation in the dynamic Nepalese capital market.
NEPSE's Stubborn Slump: Why Government, Regulators, and Opposition Efforts Fail to Ignite Investor Morale
The Nepal Stock Exchange (NEPSE) finds itself in a peculiar predicament, a paradox where a unified front of government, regulatory bodies, and even the political opposition is actively advocating for capital market growth, yet investor confidence remains stubbornly low, leading to a continued market downturn. This unusual consensus, typically a harbinger of positive change, has so far failed to translate into a much-needed uplift in market sentiment, leaving investors questioning the efficacy of policy pronouncements without tangible results. Finance Minister Dr. Swarnim Wagle has publicly affirmed the government's positive stance towards the capital market, issuing directives to relevant bodies to implement necessary reforms. Echoing this commitment, Dr. Gopal Prasad Bhatta, the newly appointed Chairman of the Securities Board of Nepal (SEBON), has unveiled an ambitious 10-year roadmap for capital market development. This comprehensive plan aims to integrate the capital market with productive sectors, attract foreign investment, leverage technological advancements, and bolster investor protection – all critical steps for a maturing market. Even the primary opposition party, the Nepali Congress, has joined the chorus, initiating an economic debate titled 'Nepal's Capital Market: The Basis of Economic Investment,' underscoring the bipartisan recognition of the market's importance. However, the market's performance tells a different story. Following Tuesday's trading session, the NEPSE index dipped to 2,594.27 points, marking a further decline of 5.30 points after a 19.13-point drop on the preceding day. This translates to a significant loss of approximately 24 points over just two trading days. Looking at a broader timeframe, the index has shed 5.13% in roughly one month, falling from 2,734.60 points on July 25 to its current level on August 25. This stark contrast between high-level political and regulatory rhetoric and the market's persistent decline raises a critical question: why are investors not responding to these seemingly positive signals? The core issue appears to be a widening gap between policy declarations and their immediate impact on investor psychology. While the Finance Minister's assurances of government support and SEBON's long-term vision are undoubtedly positive developments, investors are increasingly seeking concrete outcomes rather than just promises. Past experiences have shown that commitments from various governmental and regulatory bodies, while well-intentioned, do not always translate into sustained market growth. The market, fundamentally driven by future expectations, requires more than just a blueprint; it demands visible progress in areas such as corporate earnings, market liquidity, credit expansion, favorable interest rates, and a robust risk appetite among participants. Until these fundamental drivers show improvement, policy announcements alone may not be sufficient to restore and sustain investor confidence. The involvement of the opposition party further highlights the political consensus on the capital market's significance. The Nepali Congress's initiative to discuss market challenges and solutions, with leaders like Gagan Thapa acknowledging the post-election market slump, signals a mature political environment where the capital market is no longer a partisan issue. This collective political will to foster market growth should, in theory, create a highly conducive environment for investment. Yet, the market continues its downward trajectory, presenting a compelling paradox that warrants deeper analysis. At the heart of this conundrum lies the crucial element of trust. It is not that the government or regulators do not wish for the market to grow; indeed, their actions suggest the opposite. The real challenge lies in convincing investors that these positive intentions will translate into tangible benefits. The stock market operates on the premise of future expectations – investors buy shares today based on anticipated earnings, dividends, liquidity, regulatory stability, and overall economic health tomorrow. A government policy announcement, however well-crafted, does not automatically guarantee increased corporate profits or immediate demand for shares. Similarly, regulatory reforms, while vital, do not instantly inject new capital into the market. What the market desperately needs is a deep-seated belief in the consistent and effective implementation of these policies. Recent trading patterns underscore this disconnect between policy optimism and market psychology. Despite the NEPSE index's decline, trading volumes have remained relatively robust, with Tuesday's turnover reaching approximately NPR 4.10 billion. This indicates that investors are still active in the market, but their collective sentiment and expectations are clearly skewed towards caution, if not outright pessimism. In such an environment, merely stating that "the market will improve" or unveiling a "10-year plan" is necessary but insufficient. Investors are now looking beyond drafts and declarations; they demand concrete implementation, measurable results, and a stable, predictable policy environment. The current market scenario sends a clear message: investor morale, while potentially boosted temporarily by positive rhetoric, requires credible policies and consistent execution for sustained growth. The competition among government, regulators, and political parties should shift from who can make the most positive statements to who can deliver the most convincing results. The market is not inherently opposed to reforms; rather, it remains unconvinced enough to commit capital based solely on assurances. Therefore, the immediate challenge for Nepal's capital market is not just to reverse the NEPSE's decline, but to fundamentally address the underlying reasons why investor confidence has not returned. The irony persists: while everyone in power desires a thriving market, the crucial element of investor trust remains elusive. This situation also overshadows some positive sectoral performances, such as the hydropower sector, which saw an average net profit increase of over 471% in the last fiscal year's fourth quarter, with 91 out of 111 companies reporting profits. While this demonstrates strong performance in a key sector, it has not been enough to broadly uplift the market's overall sentiment, further emphasizing the psychological barrier.
Aprilia Unleashes Powerful SR 175 Scooter in Nepal at NADA Auto Show 2026, Offering Exclusive Launch Discounts
Delta Autocorp, the official distributor for Aprilia in Nepal, has made a significant splash at the NADA Auto Show 2026 by introducing the highly anticipated and powerful Aprilia SR 175 scooter to the Nepali market. This launch marks a strategic move by the renowned Italian brand to capture a larger share of Nepal's burgeoning two-wheeler segment, particularly targeting the nation's vibrant youth and performance-oriented riders. The sales for this new model commenced directly from the auto show, which kicked off on Tuesday at Bhrikutimandap, Kathmandu, signaling Aprilia's aggressive market entry strategy. The NADA Auto Show is a pivotal event for the automotive industry in Nepal, serving as a premier platform for manufacturers and distributors to showcase their latest innovations, engage directly with consumers, and gauge market sentiment. Delta Autocorp has priced the new Aprilia SR 175 competitively at NPR 4,56,500, positioning it as an attractive option in the premium scooter category. To sweeten the deal for early adopters and capitalize on the immense buzz generated by the auto show, the company has announced a special promotional offer: customers purchasing the SR 175 during the NADA Auto Show period will receive an attractive cash discount of NPR 28,000. This aggressive pricing strategy, coupled with a significant launch discount, is meticulously designed to stimulate initial demand and establish the SR 175 as a strong contender in its segment, potentially influencing consumer spending patterns in the coming months. The Aprilia SR 175 is strategically positioned as a successor to the popular SR 160 in the Indian market, and its arrival in Nepal signifies Aprilia's unwavering commitment to bringing advanced two-wheeler technology and performance to the region. At its heart lies a robust 174.7cc single-cylinder, BS-6 compliant engine. This powerplant is meticulously engineered to deliver an exhilarating riding experience, producing an impressive 13.8 brake horsepower at 7,200 RPM and a peak torque of 14.14 Nm at 6,000 RPM. These figures unequivocally underscore the scooter's 'powerful' designation, promising brisk acceleration, responsive performance, and a thrilling ride suitable for both demanding urban commuting and spirited weekend excursions on Nepal's diverse road networks. True to Aprilia's rich heritage, the SR 175 continues the brand's signature 'racing DNA' design philosophy, characterized by aggressive lines, a sporty stance, and an unmistakable road presence. A standout feature making its debut in this segment is the sophisticated 5.5-inch colorful TFT display, a premium inclusion previously seen on high-end motorcycles like the Tuono 457. This advanced display significantly enhances the rider's experience by providing comprehensive information in a visually appealing and intuitive format. Furthermore, the SR 175 is equipped with a comprehensive suite of modern technologies, including a Bluetooth connectivity system seamlessly integrated with the Aprilia app, allowing for effortless smartphone pairing and enhanced functionality such as navigation and call alerts. The scooter boasts a full LED light setup for superior illumination and contemporary aesthetics, large 14-inch alloy wheels fitted with tubeless tires for improved handling and puncture resistance, a powerful front disc brake coupled with a single-channel ABS for enhanced safety and controlled stopping power, and a sophisticated suspension system featuring a telescopic fork at the front and a monoshock setup at the rear, ensuring a comfortable and controlled ride over varying terrains and road conditions. The introduction of the Aprilia SR 175, with its aggressive racing sport color lines and new decals, is expected to resonate strongly with Nepal's young demographic and enthusiasts of sporty riding, carving out a significant niche in the market. For investors, such product launches at major events like the NADA Auto Show are crucial indicators of consumer confidence and market dynamism within the consumer discretionary sector. The anticipated success of premium two-wheelers like the SR 175 can positively impact not only the direct automotive sector but also ancillary industries such as auto financing, spare parts manufacturing, and after-sales services. Financial institutions offering auto loans, for instance, stand to directly benefit from increased vehicle sales, reflecting a broader economic ripple effect. The sustained interest and investment in the Nepali auto market reflect a growing middle class and evolving consumer preferences, contributing to broader economic growth and offering opportunities for various stakeholders across the financial ecosystem. Customers are encouraged to visit the Aprilia stall at the NADA Auto Show for a direct viewing and booking experience, further driving engagement and sales momentum for this exciting new offering.
NEPSE Extends Losing Streak for Third Session, But Robust Turnover Signals Underlying Activity
The Nepal Stock Exchange (NEPSE) continued its downward trajectory for the third consecutive trading session, closing lower on Tuesday. Despite the broader market decline, a notable surge in trading volume suggests sustained investor interest and activity, offering a nuanced perspective on the current market sentiment. On Tuesday, the NEPSE index shed 5.30 points, settling at 2594.27. This marks a continuation of the bearish trend observed over the past two trading days. The broader market indices also reflected this downturn, with the Sensitive Index dropping by 0.50 points, the Float Index by 0.37 points, and the Sensitive Float Index by 0.20 points. Such consistent declines often test investor confidence, yet the day's trading activity presented a contrasting picture. In a significant development, the total turnover for the day witnessed a substantial increase. From NPR 3.23 billion recorded on Monday, the market saw shares worth an impressive NPR 4.10 billion (NPR 4,109,751,000) change hands on Tuesday. This robust trading volume involved 10.04 million units of shares across 46,589 transactions from 357 different stocks. The increased turnover amidst a falling index could indicate several market dynamics: active bargain hunting by investors seeking undervalued assets, profit-taking by those who entered earlier, or a general increase in market participation despite the prevailing negative sentiment. For astute investors, high volume during a dip can sometimes signal potential accumulation phases or a strong underlying liquidity. Sectoral performance on Tuesday was largely negative, with 11 out of 13 sub-indices closing in the red. The Hotel and Tourism sub-index experienced the steepest decline, falling by 0.91%. This sector, often sensitive to economic shifts and discretionary spending, might be reacting to specific news or broader economic outlooks. Conversely, the Development Bank and Non-Life Insurance sub-indices showed resilience, recording marginal gains. These sectors often exhibit defensive characteristics or benefit from specific regulatory or operational developments, attracting investor attention even during a market downturn. Among individual stocks, Sarbottam Paints continued its impressive run, hitting the positive circuit level for the day. Its share price surged by NPR 137.50, closing at NPR 1,054.70. This consistent upward movement indicates strong investor confidence and possibly positive fundamental news surrounding the company. Other notable gainers included Crest Micro Life Insurance, which saw its share price climb by approximately 15%, and Nadep Laghubitta Bittiya Sanstha, which registered a 6% increase. On the flip side, Dhaulagiri Laghubitta Bittiya Sanstha faced significant selling pressure, experiencing the day's largest decline of 10.07%. In terms of trading volume, the hydropower sector dominated the charts. Makar Jitumaya Suri Hydropower led the pack with an astounding turnover of NPR 900.79 million. Reliance Spinning Mills also saw substantial activity, with shares worth over NPR 175 million traded, followed by Solu Hydropower, whose turnover exceeded NPR 135 million. The strong performance of hydropower stocks in terms of turnover is particularly noteworthy, especially when considering the broader sector's recent financial health. Indeed, a deeper look into the hydropower sector reveals compelling underlying fundamentals. According to financial statements from 111 hydropower companies for the fourth quarter of the last fiscal year, the average net profit for these companies surged by an impressive 471%. Out of these, 91 companies reported net profits, while only 20 remained in a loss-making position. This robust profitability, driven by factors such as increased power generation, favorable power purchase agreements, and improved operational efficiencies, provides a strong fundamental basis for investor interest in hydropower stocks. The high turnover in these companies, even as the overall market declines, suggests that investors are actively positioning themselves in fundamentally strong sectors, anticipating future growth and dividends. In conclusion, Tuesday's NEPSE trading session presented a mixed bag for investors. While the headline index continued its losing streak, the significant increase in turnover points to an active market with underlying dynamics at play. The resilience of certain sectors like Development Banks and Non-Life Insurance, coupled with the strong fundamental performance and high trading volume in the hydropower sector, suggests that investors are selectively engaging with the market, focusing on companies with strong growth prospects and proven profitability despite the broader market's short-term fluctuations. This selective engagement could be a precursor to a more stable market environment once the current bearish sentiment subsides.
Nepal's Dividend Season Heats Up: Companies Gear Up for Pre-Dashain Payouts Amidst Strong Sectoral Performances
The Nepali capital market is abuzz with activity as listed companies commence the distribution of returns to their shareholders from the earnings of the last fiscal year. With the festive season of Dashain approaching, investor anticipation is at an all-time high, eagerly awaiting dividend announcements from their respective investments. While some companies have already declared their payouts, a significant number are in the final stages of preparation, aiming to reward their loyal shareholders before the major national festival. A focal point of investor attention remains the commercial banking sector, traditionally a cornerstone of the NEPSE index. Despite approximately 40 days having passed since the commencement of the current fiscal year, commercial banks have yet to make their dividend declarations. However, behind the scenes, these financial institutions are diligently working towards distributing dividends to investors ahead of Dashain. This process involves a crucial step: seeking prior approval from Nepal Rastra Bank (NRB), the central bank and primary regulator of the financial sector. Several prominent commercial banks, known for their robust dividend-paying capacity, including Everest Bank, Sanima Bank, Nabil Bank, Kumari Bank, and Machhapuchchhre Bank, have already submitted their financial statements from the last fiscal year to NRB for pre-approval. Similarly, Nepal Infrastructure Bank (NIFRA), a key player in the infrastructure financing space listed on NEPSE, has also sought NRB's green light for its dividend distribution. Once NRB grants its approval, these major players are expected to swiftly announce their dividends, injecting significant liquidity and confidence into the market. Beyond the commercial banks, other sectors have already stepped forward with encouraging dividend announcements. So far, two development banks, six hydropower companies, and seventeen mutual funds have declared dividends for their shareholders and unit holders, setting a positive tone for the dividend season. In the development banking segment, Shangrila Development Bank has proposed a total dividend of 10.52%, comprising 4% bonus shares and 6.52% cash. Meanwhile, Kamana Sewa Bikas Bank has announced a 15% cash dividend and has already convened its Annual General Meeting (AGM) to approve this proposal, signaling its readiness to distribute returns. The hydropower sector, which has recently garnered significant investor interest, continues to impress. Super Madi Hydropower leads the pack with the highest dividend declaration among its peers, offering a total of 15.78% (15% bonus shares and 0.78% cash). Other hydropower companies focusing solely on cash dividends include Hilton Hydro Energy with a substantial 20%, Ashutosh Energy at 18.94%, Kabeli Hydropower at 16.31%, Mandu Hydropower at 12%, and Sapsu Kalika Hydropower at 5%. This strong performance in dividend payouts aligns with the sector's impressive financial health, as evidenced by an average net profit increase of over 471% across hydropower companies by the fourth quarter of the last fiscal year. Out of 111 hydropower companies, 91 reported net profits, underscoring the sector's growing profitability and potential, although 20 companies still grapple with losses. The mutual fund sector has also contributed significantly to the dividend landscape, offering attractive returns to unit holders. Prabhu Smart Fund and Prabhu Select Fund, both under Prabhu Mutual Fund, have declared a uniform 12% cash dividend. Following closely, Siddhartha Investment Growth Scheme-3, NMB Sulav Investment Fund-II, Kumari Equity Fund, and Kumari Dhanabriddhi Yojana are set to distribute 10% cash dividends. Reliable Samriddhi Yojana has announced 8.42%, while Siddhartha Investment Growth Scheme-2 and MBL Equity Fund have proposed 8% dividends each. Further contributions come from NMB Saral Bachat Fund-E (5.25%), Sanima Growth Fund (5%), Kumari Sunaulo Lagani Yojana (4.7%), and both Sunrise Focused Equity Fund and NMB Hybrid Fund L-II (4.5% each). Even at the lower end, NMB 50 (3.15%), Siddhartha Systematic Investment Scheme (3%), and Kumari Sabal Yojana (2.9%) are providing cash returns, highlighting the broad-based commitment to shareholder value. For investors to be eligible for these dividends, it is crucial to be registered as a shareholder by the day preceding the specified book closure date. While some book closure dates have already passed, several important dates are still approaching. Reliable Samriddhi Yojana's book closure is scheduled for Bhadra 10. Both Siddhartha Investment Growth Scheme-2 and Siddhartha Investment Growth Scheme-3 have their book closure on Bhadra 15. For development banks and other funds, Kamana Sewa Bikas Bank and Sanima Growth Fund have set their book closure date for Bhadra 18, with Kamana Sewa having already called its AGM. Additionally, three hydropower companies—Hilton Hydro Energy, Ashutosh Energy, and Kabeli Hydropower—have their book closure date on Bhadra 19. The ongoing dividend season, particularly with the anticipated announcements from major commercial banks, is expected to significantly boost market sentiment and liquidity. These payouts provide investors with tangible returns, reinforcing confidence in the Nepali capital market and encouraging further participation, especially as the nation gears up for its biggest festival. The diverse range of dividend declarations across various sectors underscores the market's dynamism and the commitment of listed entities to shareholder value.
SEBON Unveils Sweeping Reforms: New Directives to Modernize Nepal's Capital Market and Enhance Investor Protection
The Nepal Securities Board (SEBON) has issued a comprehensive set of directives aimed at bolstering the integrity, transparency, and technological sophistication of the nation's capital market. These far-reaching instructions, leveraging the authority granted by Sub-section (1) of Section 84 of the Securities Act, 2063, are designed to safeguard investor interests and propel the market towards greater modernization. The directives target key stakeholders including the Nepal Stock Exchange (NEPSE), CDS and Clearing Limited (CDSCL), securities brokers, merchant bankers, and listed companies. **Key Directives for NEPSE:** NEPSE, as the primary trading platform, faces a series of critical mandates. SEBON has instructed NEPSE to conduct an IT audit and VAPT (Vulnerability Assessment and Penetration Testing) of its Trading Management System (TMS) and submit a detailed report. Furthermore, NEPSE is tasked with identifying and resolving existing issues within the Nepal Online Trading System (NOTS) to enhance its efficiency and capabilities. A significant directive addresses the burgeoning interest in Artificial Intelligence (AI) based trading; SEBON has ordered a halt to AI-driven order entry until a thorough study of international practices and Nepal's specific needs is completed, with investors to be duly informed. To improve accessibility, NEPSE must facilitate second-market trading through mobile applications and ensure the effective implementation of After Market Orders (AMO). The integration of C-KYC (Centralized Know Your Customer) with TMS is also a priority. In a move to offer more nuanced market insights, NEPSE has been directed to develop new indices, such as NEPSE 30 and NEPSE High Cap, and to calculate existing indices based on free-float shares, reflecting actual tradable shares more accurately. For investor convenience, SEBON has mandated the implementation of 'Auto EDIS' (Electronic Debit Instruction Slip) through API integration between CDSCL and TMS. This crucial step is expected to eliminate the current manual process for investors to confirm share sales, streamlining the settlement cycle. Additionally, CDSCL is required to provide instant 'push notifications' via mobile for important updates such as IPO allotments, bonus and rights share credits, settlement confirmations, and demat debits. Addressing data discrepancies, NEPSE must establish real-time reconciliation between DP (Depository Participant) holdings displayed in TMS and actual holdings recorded by CDSCL. A study and report on resolving issues related to 'fraction share' trading have also been requested. **Directives for Securities Brokers:** Securities brokers are now subject to stricter regulations concerning client funds. SEBON has mandated the rigorous implementation of separate bank accounts for client funds and the broker's own funds, enhancing financial security and transparency. To improve investor grievance redressal, all brokerage firms must establish a dedicated 'Grievance Resolution Unit' and submit monthly reports to SEBON within three working days of the month's end. Brokers, in conjunction with NEPSE, are also reminded to ensure the effective and timely disbursement of funds to investors within the T+2 settlement period. **Directives for Merchant Bankers:** Merchant bankers, pivotal to the primary market, have been instructed to ensure there are no conflicts of interest during the issuance of securities. Furthermore, when submitting applications for new IPOs, the inclusion of an audited financial report has been made mandatory, reinforcing due diligence and investor confidence. **Directives for Listed Companies:** Listed companies will see new rules for major shareholders. Any fundamental shareholder holding 5% or more of a company's shares must now inform the respective company at least 15 days prior to selling their shares. The company, in turn, is obligated to publicly disclose this information through NEPSE, promoting greater transparency and preventing sudden market shocks from large block trades. **Directives for Collective Investment Schemes (Mutual Funds):** Scheme managers of mutual funds are now required to maintain a higher level of transparency. They must publish their approved offer documents, daily buy and repurchase units, Net Asset Value (NAV), and the total number of unitholders prominently on their official websites. **Promoting Financial Literacy:** In a broader effort to foster a more informed investor base, SEBON has directed all market participants—NEPSE, CDSCL, brokers, and merchant bankers—to conduct at least one financial literacy program per month. These initiatives are expected to educate potential and existing investors, thereby strengthening market participation and understanding. SEBON believes that these comprehensive measures will significantly enhance the transparency and efficiency of the Nepali capital market, ultimately boosting investor confidence and contributing to its robust development. The directives underscore the regulator's commitment to creating a fair, orderly, and technologically advanced trading environment for all participants.
Nepal's Hydropower Sector Shines: Average Net Profit Soars Over 471% in Q4
Nepal's burgeoning hydropower sector has demonstrated remarkable financial resilience and growth, with companies reporting an average net profit increase exceeding an astounding 471% by the fourth quarter of the last fiscal year. This significant surge underscores the sector's pivotal role in the nation's economic landscape and its growing appeal to investors. According to a comprehensive analysis of the financial statements from 111 hydropower companies, a vast majority, specifically 91 entities, have successfully transitioned into profitability. This positive trend highlights improved operational efficiencies, increased power generation, and potentially more favorable market conditions. However, the data also reveals that 20 companies are still grappling with losses, indicating that challenges persist for a segment of the industry. This disparity suggests a maturing market where well-managed projects with strategic advantages are thriving, while others face hurdles such as project delays, cost overruns, or lower-than-expected generation. The robust performance of the hydropower sector can be attributed to several key factors. Nepal's abundant water resources, coupled with a growing domestic demand for electricity and increasing opportunities for cross-border power trade, have created a conducive environment for growth. Government initiatives aimed at promoting clean energy and ensuring energy security have also played a crucial role, often through supportive policies and infrastructure development. Furthermore, improved monsoon seasons in recent years have likely contributed to higher generation capacities, directly boosting revenues for many projects. For investors, these figures present a compelling narrative. The substantial average profit growth signals strong fundamentals within the sector, potentially leading to attractive dividend payouts and capital appreciation for shareholders. The fact that 91 out of 111 companies are profitable suggests a broad-based recovery and expansion, rather than isolated successes. However, investors should also exercise due diligence, carefully evaluating individual company performance, project risks, and management quality, especially given that a notable portion of companies are still struggling. The long-term outlook for hydropower remains positive, driven by Nepal's ambitious energy targets and its strategic position as a potential energy exporter in the South Asian region. The expansion of the hydropower sector is not only a boon for investors but also a cornerstone of Nepal's national development agenda. It contributes significantly to reducing reliance on imported energy, fostering industrial growth, and creating employment opportunities. As the nation continues to harness its vast hydroelectric potential, the sector is poised to attract further investment, both domestic and foreign, solidifying its position as a critical pillar of Nepal's economic prosperity. Addressing the challenges faced by the loss-making companies, perhaps through policy interventions or strategic restructuring, will be crucial for ensuring the sustainable and equitable growth of the entire sector.
Technically Right, Market Wrong: Why Dr. Wagle’s Economic Logic Clashes with NEPSE Reality
In macroeconomic theory, clean governance, strict regulatory compliance, and structural reforms are the pillars of long-term economic stability. From an academic standpoint, a policy agenda centered on removing a country from the FATF grey list, investigating insider trading, and preventing powerful cartels from capturing the financial system is a goal no reasonable observer can argue against. Yet, on the floor of the Nepal Stock Exchange (NEPSE), theory collides directly with cash flow and trader behavior. When Finance Minister Dr. Swarnim Wagle addresses the market, emphasizing that the government prioritizes long-term capital and institutional reforms over short-term index fluctuations, his logic is understandable. However, the disconnect between top-down macroeconomic priorities and the ground-level mechanics of NEPSE helps explain why market sentiment can remain weak even when official policy is aimed at strengthening the financial system. The Friction Between Reform and Liquidity Dr. Wagle’s public statements reflect a traditional technocratic approach: enforce transparency, investigate market manipulation, and build world-class financial institutions. While these steps protect long-term market integrity, daily trading operates on risk appetite, clear leverage parameters, and monetary flow. Compliance Uncertainty vs. Market Morale: Sweeping regulatory crackdowns and aggressive financial investigations naturally breed caution. When retail and institutional capital fear regulatory overreach or sudden compliance shifts, money moves straight to the sidelines. Macro Horizons vs. Micro Realities: Policy reforms require years to yield measurable corporate earnings or structural GDP growth. Secondary market participants, however, navigate short- to medium-term liquidity cycles, interest rate movements, and central bank directives. The Valuation Gap: Macroeconomists often view rapid market expansions as speculative bubbles in need of correction. Active traders view those same expansions as critical liquidity windows necessary for capital distribution, turnover, and depth. Bridging the Divide: Recognizing NEPSE's Socio-Economic Weight A healthy capital market requires both structural integrity and active liquidity. Clean governance without investor confidence leads to market stagnation; high liquidity without regulatory standards invites systemic manipulation. To bridge this disconnect, macroeconomic planning must acknowledge that NEPSE is not merely a speculative arena, but a vital economic engine delivering immediate tangible benefits to the national economy: Direct Tax Revenue Engine: Through capital gains tax (CGT), transaction levies, and regulatory fees, NEPSE generates billions of rupees directly into government coffers annually, providing instant, non-inflationary revenue to the state without relying on foreign aid or debt. Ecosystem of Employment: Beyond listed companies, the secondary market powers an entire domestic industry. It sustains thousands of direct jobs across brokerage firms, merchant banks, depository participants, financial media outlets, tech vendors, and independent advisory platforms. Retaining Talent and Capital Domestically: At a time when foreign labor migration drains Nepal's youth and domestic savings, active participation in the stock market offers young professionals, traders, and retail investors a viable path to earn, invest, and build wealth locally. This keeps capital circulating directly within the domestic economy instead of flying out as remittances or foreign investments. Treat Investors as the Nation’s Own Children Instead of viewing capital-market activity only through a narrow lens of unproductive speculation, Finance Minister Dr. Swarnim Wagle and economic policymakers should recognize investors as citizens who are putting their hard-earned savings into the domestic financial system. A supportive state does not need to choose between investor protection and market discipline. It should create an environment in which citizens can invest with confidence while ensuring that market participants follow transparent and fair rules. The government’s responsibility is therefore to protect market integrity without unnecessarily discouraging legitimate investment activity. Article By: Ketan Bohara
NEPSE Extends Losing Streak For Straight Third Session;Turnover Dips Below Rs 4.10 Arba
The Nepal Stock Exchange (NEPSE) recorded a single-digit loss today, losing by 5.30 points (0.20%) to close at 2,594.27. This follows a 19.13 -point loss in the previous trading session. The benchmark index opened at 2,598.49 and fluctuated between an intraday high of 2,608.73 and a low of 2,588.11 before settling at the close. Total turnover for the day amounted to Rs. 4.10 Arba, with 10,044,164 shares traded across 357 companies through 46,589 transactions. The total market capitalization stood at Rs. 44.62 Kharba, with a float market capitalization of Rs. 15.05 Kharba. Makar Jitumaya Suri Hydropower Limited (MAKAR) topped the turnover chart, recording transactions worth Rs. 90.07 crores. The company’s stock closed at Rs. 439.00. Sarvottam Paints Industries Limited (SAPIL) hit the upper circuit with a 14.99% gain. The stock closed at Rs. 1,054.70 . Meanwhile, Dhaulagiri Laghubitta Bittiya Sanstha Limited (DLBS) recorded the Highest fall, falling by 10.07%. The last traded price of the company was Rs. 1,034.20. Among sectors, the Non Life Insurance recorded the highest gain, gaining by 0.36%, while the Finance Index recorded the highest loss, down 0.91%.
Six months of war: 20 dead in 68 incidents near Hormuz, IMO says
The Strait of Hormuz has been the main focus of the six-month war between Iran and the US and Israel, with many commercial vessels targeted in the vital conduit for oil and gas shipments. In total, 68 incidents have been confirmed by the International Maritime Organization (IMO) in the Gulf and neighbouring bodies of water, the equivalent of one every 2.6 days. Across all incidents, at least 20 seafarers or port workers were reported killed, 35 wounded and one missing, the UN maritime agency said. About half of the incidents have involved tankers, 20 percent container ships and 15 percent bulk carriers. The United Kingdom Maritime Trade Operations (UKMTO) classified 47 of the incidents as attacks. Liberia-flagged vessels have been most affected, being involved in 13 incidents, followed by 10 vessels each from Panama and the Marshall Islands. Iran-flagged vessels were reported as being involved in four incidents. The rate of incidents has ebbed and flowed during the various phases of the war. From the outbreak of war at the end of February until an agreement establishing a framework for peace talks was struck in mid-June, an incident was reported on average once every 2.3 days. Incidents during this period accounted for 16 of the deaths and 19 of the injuries, and were recorded throughout the Gulf, both east and west of Hormuz, and off the coasts of Iraq, Iran, Qatar, Saudi Arabia, Oman and the United Arab Emirates. As peace talks continued, until around July 7, that rate halved to one incident every 4.6 days, on average. No seafarers or other workers were reported killed, missing or injured during this period. Four of the five incidents during this period were clustered off the Omani coast around the strait's narrowest point, along a route not authorised by Iranian authorities. Iran, which hopes to retain control of the Hormuz after the war and charge fees for passage, had warned vessels against taking the alternative route. Since talks collapsed, the rate has climbed almost back to pre-talks levels, with an incident recorded on average every 2.8 days. Four seafarers or workers have been killed, 16 injured and one reported missing as a result.
Nepal's Inland Revenue Department Unveils Advanced Taxpayer Portal, Streamlining VAT Corrections and Bolstering eTDS Compliance
The Inland Revenue Department (IRD) of Nepal has initiated a significant leap towards modernizing its tax administration with the launch of a new, advanced 'Taxpayer Portal'. Rolled out for testing on Bhadra 9th (August 25th), this innovative platform is designed to offer taxpayers a more seamless, efficient, and transparent experience, marking a pivotal moment in the nation's digital governance journey. Developed using a 'design-driven development' methodology and 'micro-service architecture,' the new portal aims to address long-standing challenges faced by taxpayers and the department alike. Dr. Bhishma Kumar Bhusal, Director General of the IRD, confirmed that the previous portal will continue to operate concurrently until the new system's testing phase is successfully completed, ensuring a smooth transition for all users. One of the most impactful features of the new portal is the empowerment of taxpayers through self-service capabilities. Previously, monthly statements for excise-generating establishments required verification solely by IRD offices. Now, taxpayers can self-verify these details directly through the portal, significantly reducing administrative bottlenecks. Furthermore, the income statement (De-04) has been streamlined, with Schedule 10, which previously required manual input, now featuring an auto-population mechanism, minimizing errors and saving time. In a move set to enhance transparency and compliance, the portal mandates the monthly submission of tax deducted at source (TDS) details. This is a crucial step towards ensuring timely revenue collection and greater accountability. Foreign investors, a vital component of Nepal's economic growth, will also benefit immensely, as the new system allows for online applications for Permanent Account Numbers (PAN), simplifying a previously cumbersome process. Perhaps the most anticipated enhancement is the introduction of a seven-day window for taxpayers to amend Value Added Tax (VAT) statements. This feature directly tackles a major pain point: in the past, even minor numerical errors in VAT filings necessitated a physical visit to the tax office, leading to significant inconvenience and delays. With the new portal, taxpayers can now rectify such errors from the comfort of their homes or offices, fostering a more taxpayer-friendly environment. Moreover, the IRD is tightening its grip on Electronic Tax Deducted at Source (eTDS) compliance. While existing regulations require eTDS submissions by the 25th of each month, a prevalent practice saw many entities holding onto funds until the fiscal year-end before making their submissions. Dr. Bhusal emphasized that the new system will enforce timely entry of deducted tax amounts. He stated, "If the amount is not visible in the system by the 25th of the next month, the concerned taxpayer will have the right to question why and who held their funds." This measure is expected to curb the manipulation of tax liabilities through practices like 'back-dating' entries, ensuring that revenue reaches the state treasury promptly. While acknowledging that minor technical glitches might occur during the testing phase, Dr. Bhusal reiterated the department's commitment to continuous improvement, promising further simplification of the portal's design and the integration of additional essential features. The reforms are poised to not only streamline tax administration but also to foster good governance, reduce administrative burdens on taxpayers, and enhance overall revenue mobilization for the nation, ultimately contributing to a more robust and transparent economic landscape.
Mahalaxmi Bikas Bank Accelerates Auto Financing and Digital Innovation at NADA Auto Show 2026
The 18th NADA Auto Show 2026, a premier event for Nepal's automotive industry, has commenced at Bhrikutimandap, Kathmandu, running from Bhadra 9 to Bhadra 14, 2083. Among the key financial institutions making their presence felt is Mahalaxmi Bikas Bank Limited (MLBL), a prominent development bank known for its consistent participation and commitment to supporting the automotive sector. This year, MLBL is strategically leveraging the NADA platform to engage directly with potential vehicle buyers and offer highly competitive auto loan solutions. Mahalaxmi Bikas Bank's stall (No. N, Hall 04) is a hub for comprehensive consultation and facilitation services regarding auto loans. The bank is presenting an array of attractive interest rates and significant discounts on administrative charges, designed to make vehicle ownership more accessible and affordable for a wide range of customers. A standout feature of their current offering is the bank's base rate for Bhadra, which stands at an impressively low 5.64%. This competitive base rate directly translates into substantial benefits for customers opting for vehicle loans through MLBL, positioning the bank as a highly attractive financing partner in the current market. The NADA Auto Show, organized by the NADA Automobiles Association of Nepal, is not merely an exhibition of vehicles; it's a crucial economic barometer and a marketplace where industry trends are set, and significant transactions occur. For financial institutions like Mahalaxmi Bikas Bank, it represents an unparalleled opportunity to connect with a diverse clientele, including individuals seeking private vehicles, businesses looking to expand their commercial fleets, and increasingly, those interested in the burgeoning electric vehicle (EV) market. MLBL's offerings cover financing options for electric, private, and commercial vehicles, demonstrating a holistic approach to catering to the evolving demands of the Nepali automotive landscape. MLBL's regular participation in such a high-profile event underscores its strategic focus on expanding its loan portfolio and strengthening its market presence within the development banking sector. By providing tailored financial solutions, the bank plays a vital role in stimulating vehicle sales, supporting local businesses, and contributing to the overall economic mobility and growth of the nation. The ease of access to financing, coupled with favorable terms, is a significant driver for both individual consumers and commercial enterprises looking to invest in new vehicles. Beyond its strong presence at the NADA Auto Show, Mahalaxmi Bikas Bank has also been actively pursuing digital transformation initiatives. A recent testament to this forward-thinking approach is the launch of its Digital Hub, complete with a modern coffee lounge, at Gyaneshwor, Kathmandu. This initiative is part of the bank's broader strategy to enhance customer experience through innovative digital banking solutions, offering convenience and efficiency in an increasingly digital world. This blend of traditional, direct customer engagement at events like NADA and a robust digital infrastructure positions Mahalaxmi Bikas Bank as a dynamic and customer-centric financial institution poised for sustained growth. For investors, MLBL's proactive engagement in key market events and its commitment to digital innovation signal a robust business development strategy aimed at capturing market share and ensuring long-term profitability.