Kathmandu. In the current Fiscal Year 2078/79, no insurance companies will be allowed to issue right shares. The Insurance Committee has instructed all insurance companies not to propose unofficial rights issue. Although the committee has not yet issued any written instructions, it has instructed not to bring any proposal for the rights during the talks.

Some insurance companies are preparing to issue shares internally. However, they have been instructed not to make such preparations this year, said Raju Maran Poudel, executive director of the Insurance Committee.

The committee has requested the insurance companies not to plan for the right share issue in the policy and program to be prepared for the current fiscal year. There is a provision to submit the policy and program prepared by the insurance companies to the Insurance Committee for information.

In such policies and programs, insurance companies plan to expand branches, recruit staff, invest in information technology required for office purposes, and purchase land for office building purposes. If there is any plan to increase the capital by issuing right shares in the scheme, it has been instructed to remove it.

The committee has taken such a step to control the sale of right shares for the purpose of increasing the price in the stock market. Some time ago, the committee had stopped Azod Insurance Company from doing insider trading by leaking information about the right share issue. The committee has tightened the rules after trying to play on the information of rightful share issue in the stock market.