Classification Of Listed Companies By NEPSE
INVESTOPAPER
NEPSE had started the classification of listed companies into Group ‘A’ and Group ‘B’ since fiscal year 1996/97 which was changed to the quarterly classification of ‘A’, ‘B’, ‘G’ and ‘Z’ (Four) Groups on October 15, 2018.
NEPSE classifies listed companies into Group ‘A’ based on the following criteria:
– Paid up capital should be at least Rs.1000 million.
– Listing of securities was made three years before.
– Should be in profits and dividend distributed in the last three consecutive years.
– Have rated by Credit Ratings Agency average or above the average.
– Should have financial statements in the formats/ standards specified by the Regulators.
– Have conducted AGM within the six months of the fiscal year end.
NEPSE classifies listed companies into Group ‘B’ based on the following criteria:
– Paid up capital should be at least Rs.500 million
– Listing of securities was made three years before.
– Should be in profits at least two years in the last three years.
– Have rated by Credit Ratings Agency one level below than the average.
– Have conducted AGM within the six months of the fiscal year end.
– Should not have accumulated loss.
NEPSE classifies listed companies into Group ‘G’ if the listed companies have not completed two years after listing.
NEPSE classifies listed companies into Group ‘Z’ if the listed companies have not been classified in any of the ‘A’, ‘B’ and ‘G’ Groups.
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