Nepal Life Resumes Share Trading

June 30: The share trading of Nepal Life Insurance Company (NLIC) has resumed from June 30. Previously, the trading was blocked by Securities Board of Nepal (SEBON) for setting higher premium rates for further public offering (FPO).

“The company is making the work process to bring uniformity in the issuance of new shares.  However, the share transaction has been resumed as the work process requires more time,” says SEBON in a press statement. The regulator has confirmed that it has received prospectus about the share issuance from the company.  If the board is not satisfied with premium rate in the prospectus, the company will have to justify the rates of the shares. Earlier, the company announced to sell 3.09 million units of shares at  Rs 2,951 per unit through NEPSE on the last week of Jestha.

SEBON asked NEPSE to stop the share trading of NLIC stating that company had maintained the highest premium rate till date in order to manipulate prices in the secondary market and fixed the rate without any basis. SEBON has maintained that the action was necessary as the company announced the information without presenting prospectus in the board and ignoring the sensitivity of share prices.

The board has also directed NEPSE to announce FPO as per the Securities Act, Securities Registration and Issuance Regulation.