SALICO Accused of Irregularities in Promoter Share Conversion

Kathmandu – Allegations of irregularities have surfaced against Sagarmatha Lumbini Insurance Company (SALICO) regarding the conversion of promoter shares of the then Sagarmatha Insurance Company into general public shares. The process, which was supposed to adhere to the approval provided by the Nepal Insurance Authority (NIA), is now under scrutiny for discrepancies and potential manipulation.

As per the NIA’s written directive on Magh 7, 2079, 51% of the promoter shares held by Nepali investors—excluding the 20% stake held by Ceylinco Insurance, Sri Lanka—were to be converted into general public shares. However, it was found that while some shareholders’ shares were converted properly, others were either left untouched or converted beyond the prescribed 20%.

The issue came to light following a public notice issued by the company on Jestha 11, 2080, asking shareholders who did not wish to convert their shares to apply. This selective approach allegedly led to a disproportionate implementation of the directive, with shares exceeding the permitted 20% limit being converted for certain investors.

Critics, including stock market experts, have labeled the company’s actions as misleading and illegal. Meanwhile, Regulatory Insurance Authority spokesperson Sushivdev Subedi stated that the matter requires further investigation before any formal comment.

On the company’s side, SALICO CEO Chunky Chhetri claimed the share conversion issue had been resolved, while Chairman Manohar Das Mool denied knowledge of the matter, citing his association with Lumbini General Insurance at the time.