NIA Chairman’s Intervention Pauses Regulatory Action on Guardian Micro Life Insurance

Kathmandu – The Nepal Insurance Authority (NIA) has directed Guardian Micro Life Insurance to postpone its planned special general meeting (SGM) and suspend the issuance of right shares, following regulatory concerns. The move comes in response to the company’s decision to call an SGM shortly after its initial public offering (IPO) to propose a 1:1 ratio issuance of right shares.

According to the Authority, a letter instructing the postponement was issued on Chaitra 28 (April 10), after the clarification provided by the company regarding the SGM scheduled for Chaitra 18 (March 31) was found to be unsatisfactory. The company, however, maintains that it received the directive only on Baisakh 2 (April 15) and subsequently postponed the meeting through a board decision on Baisakh 3 (April 16).

While the Authority has taken swift action in similar cases in the past, it has opted not to proceed further against Guardian Micro Life Insurance. Sources indicate that this pause in enforcement was due to a directive from Authority Chairman Sharad Ojha, effectively stalling any immediate regulatory measures.

Despite the current halt, a member of the company’s board confirmed that preparations are underway to revisit the right share proposal at a later date.