OTC Market in Nepal: A Comprehensive Guide to Over-the-Counter Trading
While the Nepal Stock Exchange (NEPSE) is the primary hub for public equity, the OTC (Over-the-Counter) Market serves as a vital secondary platform for companies that do not meet standard listing requirements or have been delisted. Operated by Nepal Stock Exchange Ltd. since 2064 B.S. (2007/08), it provides a formal mechanism for the transfer and trading of unlisted shares.
What is the OTC Market?
The OTC Market is a decentralized market where shares of companies not listed on the main board of NEPSE are traded. According to the guidelines from the Office of the Company Registrar and NEPSE, this market is designed for:
Unlisted Public Companies: Companies that have not yet issued an IPO or do not meet NEPSE's listing criteria. Delisted Companies: Public companies that have been removed from the main NEPSE board. Ineligible Companies: Companies that failed to fulfill the necessary conditions for listing.
Market Statistics (FY 2079/80)
The OTC market is a significant alternative for institutional and private investors in Nepal:
Total Registered Companies: 206 Companies Traded in FY 2079/80: 84 Total Quantity Traded: 21,264,095 shares Total Turnover: रू 2,858,419,786 Capital Gains Tax (CGT) Collected: रू 5,29,55,980
Complete OTC Transaction Log (FY 2079/80)
The following table contains the full list of companies and transactions recorded in the OTC market during the fiscal year 2079/80 as per NEPSE records:
| Date (B.S.) | Company Name | Quantity | Rate (रू) | Total Amount (रू) |
|---|---|---|---|---|
| 04.01.2079 | Shuvam Power Company Ltd | 45,300 | 100 | 4,530,000 |
| 04.03.2079 | Sundhara Securities Ltd | 114,200 | 270 | 30,834,000 |
| 04.08.2079 | Civil Capital Market Ltd | 1,286 | 120 | 154,320 |
| 04.11.2079 | Kathmandu Forestry College | 1,942 | 1,125 | 2,184,750 |
| 04.11.2079 | Alpha Plus Ventures | 145,000 | 100 | 14,500,000 |
| 04.11.2079 | Rubi Hydropower | 30,000 | 100 | 3,000,000 |
| 04.29.2079 | Vijayadeep Laboratories | 18,000 | 100 | 1,800,000 |
| 04.29.2079 | Shuvam Power Company Ltd | 199,514 | 100 | 19,951,400 |
| 04.29.2079 | Muktinath Krishi Company | 6,500 | 105 | 682,500 |
| 05.09.2079 | Pravu Capital Ltd | 206,165 | 114 | 23,502,810 |
| 05.13.2079 | Hathway Investment Nepal | 250,000 | 100 | 25,000,000 |
| 05.20.2079 | Alpha Plus Ventures Ltd | 150,000 | 100 | 15,000,000 |
| 05.21.2079 | Menchhiyam Hydro Power | 695,000 | 100 | 69,500,000 |
| 06.05.2079 | Lord Buddha Academic | 99,225 | 100 | 9,922,500 |
| 06.11.2079 | Nepal Polytechnic Institute | 19,050 | 214.73 | 4,090,606.5 |
| 06.12.2079 | Muktinath Krishi Company | 5,000 | 100 | 500,000 |
| 06.12.2079 | Muktinath Krishi Company | 10,000 | 105 | 1,050,000 |
| 07.15.2079 | Sopan Multiple Company | 86,747 | 119 | 10,322,893 |
| 07.20.2079 | Siddhartha Capital | 31,690 | 100 | 3,169,000 |
| 07.29.2079 | Pushpalal Investment Company Ltd | 26,050 | 100 | 2,605,000 |
| 09.11.2079 | Lapha Group Ltd | 119,590 | 100 | 11,959,000 |
| 09.13.2079 | Charter Capital Investment Ltd | 68,150 | 106 | 7,223,900 |
| 09.18.2079 | Overseas Nepalese Investment Com | 11,500 | 100 | 1,150,000 |
| 09.20.2079 | Lord Buddha Academic | 46,944 | 500 | 23,472,000 |
| 09.26.2079 | Aadar Multi Investment Com | 16,000 | 100 | 1,600,000 |
| 10.09.2079 | Muktinath Krishi Company | 10,000 | 105 | 1,050,000 |
| 10.24.2079 | Nepal Cancer Hospital and Research | 45,000 | 112 | 5,040,000 |
| 11.04.2079 | Shikhar Organization Limited | 1,000 | 173 | 173,000 |
| 11.14.2079 | SmartChoice Technologies | 493,312 | 185 | 91,262,720 |
| 11.14.2079 | Cosmic Electricials Ltd | 1 | 100 | 100 |
| 11.21.2079 | Aakash Capital Limited | 405,000 | 100 | 40,500,000 |
| 11.21.2079 | Beni Hydropower Limited | 1,400,700 | 106 | 148,474,200 |
| 11.26.2079 | Deerwalk Group Ltd | 100,000 | 250 | 25,000,000 |
| 12.10.2079 | Sopan Multiple Company | 515,544 | 100 | 515,544,000 |
| 12.12.2079 | Adar Multi Investment Co Ltd | 25,000 | 100 | 2,500,000 |
| 12.14.2079 | Shindu Bhotekoshi Hydropower | 19,590 | 100 | 1,959,000 |
| 12.14.2079 | Orchid Holdings Ltd | 3,560,500 | 150 | 534,075,000 |
| 12.14.2079 | Orchid Holdings Ltd | 300,000 | 141 | 42,300,000 |
| 12.16.2079 | Lord Buddha Academic Ltd | 21,277 | 500 | 10,638,500 |
| 12.16.2079 | Shikhar Organization Limited | 4,000 | 173 | 692,000 |
| 12.30.2079 | Agro Commerce Nepal Limited | 59,000 | 100 | 5,900,000 |
| 01.05.2080 | Sopan Multiple Company Ltd | 23,132 | 102 | 2,359,464 |
| 01.06.2080 | Hathway Investment Nepal | 100,000 | 86 | 8,600,000 |
| 01.10.2080 | Muktinath Capital Ltd | 20,000 | 100 | 2,000,000 |
| 01.17.2080 | Property Wizard Ltd | 295,000 | 100 | 29,500,000 |
| 01.21.2080 | Him River Power Ltd | 224,000 | 100 | 22,400,000 |
| 01.24.2080 | Nepal Polytechnic Institute Ltd | 7,454 | 219 | 1,632,426 |
| 01.25.2080 | Nepal Life Capital Ltd | 8,000 | 100 | 800,000 |
| 01.26.2080 | Mero Job Ltd | 60,810 | 101 | 6,141,810 |
| 01.26.2080 | Lakshya Capital Ltd | 13,000 | 102 | 1,326,000 |
| 01.26.2080 | Reliable Venture Capital Ltd | 1,744,500 | 100 | 174,450,000 |
| 02.02.2080 | First Solar Developers Nepal Ltd | 30,600 | 100 | 3,060,000 |
| 02.03.2080 | Sarbottam Steels Ltd | 699,250 | 160 | 111,880,000 |
| 02.03.2080 | Sarbottam Steels Ltd | 10,000 | 200 | 2,000,000 |
| 02.03.2080 | Sarbottam Steels Ltd | 1,359,000 | 100 | 135,900,000 |
| 02.03.2080 | Nepal Stock Exchange Ltd | 509,342 | 667.52 | 339,995,971.8 |
| 02.07.2080 | Mid Solu Hydropower Ltd | 1,229,486 | 150 | 184,422,900 |
| 02.10.2080 | Cosmic Electricials Ltd | 1 | 220 | 220 |
| 02.14.2080 | Shree Distillery Ltd | 323,750 | 108 | 34,965,000 |
| 02.14.2080 | Kalinchok Hidropower Ltd | 117,700 | 100 | 11,770,000 |
| 02.17.2080 | Khoranga Hydropower Ltd | 5,275 | 100 | 527,500 |
| 02.23.2080 | Pravu Capital Ltd | 143,175 | 112 | 16,035,600 |
| 02.23.2080 | Hathway Investment Nepal | 357,295 | 86 | 30,727,370 |
| 02.25.2080 | Taksar Pikhuwa Khola Hydropower | 361,000 | 100 | 36,100,000 |
| 02.28.2080 | NPI Narayani Samudayik Hospital | 46,041 | 137.27 | 6,320,048.07 |
| 02.29.2080 | SAEAN Seed Service Center | 842 | 190 | 159,980 |
| 02.29.2080 | Avasar Equity | 91,700 | 100 | 9,170,000 |
| 02.17.2080 | Kantipur Television Network Ltd | 207,000 | 178 | 36,846,000 |
| 02.17.2080 | Kantipur Television Network Ltd | 226,800 | 100 | 22,680,000 |
| 02.30.2080 | Muktinath Krishi Company | 119,776 | 105 | 12,576,480 |
| 02.31.2080 | Avasar Equity | 62,500 | 100 | 6,250,000 |
| 03.03.2080 | Singapore Gurkha Polyclinic | 618,500 | 100 | 61,850,000 |
| 03.04.2080 | Seed Energy Ltd | 166,132 | 130 | 21,597,160 |
| 03.06.2080 | Apex Multiplex Ltd | 140,000 | 100 | 14,000,000 |
| 03.20.2080 | Jyoti Capital Ltd | 10,000 | 104 | 1,040,000 |
| 03.24.2080 | Sagar Distilleries Ltd | 100,000 | 100 | 10,000,000 |
| 03.24.2080 | National Dental Hospital Ltd | 4,039 | 213 | 860,307 |
| 03.24.2080 | Sing Gorkha Investment Ltd | 123,000 | 100 | 12,300,000 |
| 03.24.2080 | Paurakhi Group International Ltd | 58,104 | 100 | 5,810,400 |
| 03.27.2080 | Kathmandu Forestry College | 280 | 1,125 | 315,000 |
| 03.27.2080 | Pravu Capital Ltd | 18,758 | 120 | 2,250,960 |
| 03.29.2080 | Mero Job Ltd | 135,000 | 100 | 13,500,000 |
| 03.29.2080 | Annapurna Cablecar Ltd | 2,052,143 | 100 | 205,214,300 |
| 03.31.2080 | Seed Energy Ltd | 78,933 | 130 | 10,261,290 |
Why the OTC Market Matters
For platforms like Nepse Lightning, the OTC market is a critical source for pre-IPO data. It offers:
- Price Discovery: Provides a historical benchmark for company valuation before an IPO.
- Exit Strategy: Offers a legal venue for promoters and early investors to trade unlisted shares.
- Broad Industry Representation: Features companies across various sectors, from Hydropower to Healthcare and Information Technology.
Investor Note: OTC trading is less liquid than the primary NEPSE market and involves manual documentation and verification at the NEPSE OTC branch.