Kathmandu. The Nepal Insurance Authority (NIA) has sought clarification from Guardian Micro Life Insurance for announcing the date of the special general meeting with the right share proposal. The NIA has drawn its attention to the proposal to issue right shares in the ratio of 1:1 under the special proposal in the notice regarding the Special General Meeting and sought an explanation.
According to the NRA, based on the decision of the board of directors of the insurance company on April 1, 2018, a notice regarding the special general meeting was published in the national dailies on April 15, 2018. In the published notice, it has been proposed to issue right shares under a special proposal.
Since changing the structure by increasing the capital is the fundamental matter of the company and it has regulatory concerns, the notice of capital increase of the insurer without the prior approval of the AUTHORITY will have a direct impact on the general investors and all sectors of the capital market. it was.
Nepal Insurance Authority is the direct regulator of Guardian Micro Life Insurance. It has the legal right to directly regulate every activity of insurance. Unless the AUTHORITY gives prior approval or consent for the issue of right shares, the insurance company cannot issue the right shares by getting approval from the capital market regulator SEBON only on the basis of the decision taken by the General Assembly or the General Assembly. In case of default, the AUTHORITY can cancel the license of Guardian Micro Life Insurance.
Although the basic financial condition of the insurance company, which recently issued primary shares to the general public, is being criticized for increasing the share price rapidly by manipulating the stock market. Its share capital market (NEPSE) issued at Rs 100 per share on Sunday. It was traded at Rs 2,412. Its initial transaction value is Rs. Starting from Rs 301, shares are being traded at a high price on a solid basis in a short time. In the meantime, it is alleged that the people associated with the company manipulated the market by leaking the information about the issuance of right shares.
