Insurance Companies are Prohibited from issuing IPOs at a Premium

Kathmandu: The Public Account Committee of the Parliament has banned insurance companies from issuing IPOs at a premium. Meeting of the Public Account Committee of the Parliament held on 28th of December, 2023 A.D has given such instructions to the Insurance Authority through 10-point instructions.

The committee sitting today also asked the question on what basis the premium IPO was given. On the meeting of the committee they have decided to immediately correct the act of giving permission to insurance companies to sell shares at a premium, which is contrary to the Insurance Act and contrary to the interests of ordinary investors.

The committee asked regulatory bodies Nepal Securities Board of Nepal (SEBON) and Nepal Insurance Authority for their answers regarding premium IPO issue.

In response to the accounting committee, Chairman of Nepal Insurance Authority Surya Prasad Silwal said that he had given theoretical consent for the issue of premium IPO according to Section 29 of the Insurance Act. Executive Director Muktinath Shrestha, who was present on behalf of the SEBON, gave the answer to the finance committee that the permission was given according to the standards.