Insurance Board Directs Ajod Insurance to Postpone Rights Proposal

Apr 06, 2021 12:55 PM Merolagani

Insurance Board (IB) has directed Ajod Insurance (AIL) to postpone rights proposal. As per the IB, the company has not taken approval from the board for the right issue.

Raju Raman Paudel, Executive Director of IB said to Merolagani.com that the board directed the company to postpone the right issue proposal as it has not informed the board about the right issue.

On March 30, Ajod Insurance called out its AGM to be held on April 20 with an agenda of issuing right shares. However, one day prior to announcement i.e. on March 29, its stock price rose by 10 percent which ignited the rumor that the stock price rose due to the insider trading.

Securities Board of Nepal (SEBON) has formed a subcommittee to investigate the matter.

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