1. Though, it is not in the interest of traders, for long term sustainable growth of a company and maintaining or improving its profitability, controlling the flood of bonus/rights shares is a healthy strategy.
2. The companies may not stick 100% to the plan they have submitted to NRB. That is a broad framework of growth plan not a law that they have to abide by. That is simply a guideline and expression of their intention how they like to proceed ahead to meeting their paid up capital requirement.
3. As traders, we should look at the trend in the market and that is natural. But for investors fundamentals of a company and the change or possible change in operating environment - political and economic both are most critical factors to look into. If increase of paid up capital affects company's performance in the interim, we should plan for long term or should change the sector such as from BFIs and insurance to hydro, manufacturing, etc.
4. I have received some good number of queries about the future of SCBN. I tried to get some inside perspective and it was too difficult but there is ease at all levels. No panic, no insecurity among executives and other personnel. Hence, now I believe that SCBN will go for continuing its business in Nepal for long. If they will not be ready for injecting new money, they could sell SCB's 24% as FPO (SCB has 75% share in SCBN including that of Grindlays bank) and put that money together with some independent reserve and some bonus shares, SCBN could meet the capital requirement easily. Hence, I believe, it will stay here.
I welcome other friends perspective on issues mentioned above.
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