SEBON Lists 51 Companies As Risky For Investment
June 16, 2021 | Investopaper
In order to protect the general investors from the riskiness of the stock market, Securities Board Of Nepal (SEBON) has urged the investors to invest only on the fundamentally sound companies. The board on Tuesday made public the list of companies considered risky amid complaints of rapid movement in the share market.
Most of the companies in the list are hydropower. The rest are development banks, finance companies and others. Most companies have low paid-up capital and have issued fewer shares to the public.
The Board has informed that a detailed study has been carried out on the offenses related to securities including insider trading, circular trading and cornering of shares.
To aid the investors to avoid risky companies, the regulatory body of the stock market has listed 51 companies deemed as too risky for investment at current market prices. The Board has clarified that the companies are at risk as the share price of listed companies has increased by 300 percent and more in one year, price-to-earnings ratio (PE ratio) is 100 and above, earnings per share is negative, net worth per share is lower than face value. There has been widespread manipulation in the share trading of these companies.
See the notice below for the full information.
