Nepal Insurance Company Issues Rights Shares Without Regulatory Approval

Kathmandu – Nepal Insurance Company has issued rights shares without obtaining prior approval from the Insurance Authority, the regulatory body overseeing insurance companies in Nepal.

On Ashar 20 (July 4), the company published a notice announcing the issuance of 34.78 percent rights shares, amounting to 6,576,968 units based on its current paid-up capital. However, it has been confirmed that the company did not receive the necessary approval from the Insurance Authority before proceeding with the decision.

According to sources at the Authority, no official request for approval had been submitted. The issuance was also carried out without the endorsement of the company’s board of directors.

The decision-making process has raised questions about the role of senior officials involved. During a board meeting, some members inquired about the need for approval from the Insurance Authority. In response, CEO BK Maharjan reportedly stated that the process was already finalized. Company Secretary Sulana Shrestha is also said to have been involved in the

Following the incident, the Insurance Authority has started the process of seeking clarification from the company and its leadership. Action is being initiated under Section 139 of the Insurance Act, and the rights share issuance has been suspended.

The Authority has stated that further steps will be taken in accordance with existing laws and regulations.