KATHMANDU: Securities Board of Nepal (Sebon), the securities market regulator of the country, has directed Nepal Stock Exchange (Nepse) to halt the trading of shares of Prabhu Bank, stating that the shares of the bank are not yet registered at the board.
According to a press statement issued by the regulator on Tuesday, Prabhu Bank, after completing its merger with Grand Bank, had not registered the shares of the merged entity at Sebon.
The board’s decision came a day after Nepse started the trading of shares belonging to then Prabhu Bank owners. Prabhu and Grand received final approval for merger from the Nepal Rastra Bank (NRB) on January 29. The two institutions formally began joint operation as Prabhu Bank on February 12, after the two agreed on a swap ratio of 121.45:65.58. The swap ratio shows every 100 units of Prabhu stocks generated an extra 21.45 units of shares in the merged unit, while every 100 units of Grand shares yielded only 65.58 units of shares in the consolidated unit.
