Guardian Micro Life Insurance Barred from Issuing Right Shares Amid Regulatory Scrutiny

Kathmandu – The Nepal Insurance Authority has directed Guardian Micro Life Insurance to halt its plans of issuing 100% right shares, following the company’s controversial move to convene a special general meeting just weeks after its initial public offering (IPO).

The directive came after the regulatory body found the insurer’s response to its earlier clarification request unsatisfactory. The authority had sought justification for the decision to issue right shares in a 1:1 ratio, questioning the rationale behind such a move so soon after the IPO.

Guardian Micro Life had scheduled a special general meeting for Chaitra 18 (March 31) with the agenda to approve the right share issuance. However, the Insurance Authority intervened on Chaitra 28 (April 10), instructing the company to postpone the meeting until further notice.

The insurer raised eyebrows in the capital market by proposing the right share issue within two months of floating 30% of its paid-up capital to the public. Market analysts and investors alike have criticized the company’s approach, stating that the sudden announcement could distort investor sentiment and negatively impact the secondary market.