Speaking to Merolagani.com, Poudel informed that although the regulator will surely direct companies to increase the paid-up capital it has not yet discussed in which level. He said ‘The matter regarding the increase in paid-up capital of the insurance companies is under discussion. Moreover, IB is also currently discussing about the merger between them.’
‘However, the exact modality for the increment has not yet been settled,’ he added. In recent days, investors are being attracted to the stocks of insurance companies in the domestic market after Surya Silwal, Chairman of IB publicly spoke about it publicly.
On Sunday, many life insurance companies logged 10 percent rise in stock price. Rumor has it, the paid-up capital of of life insurance company will be set at Rs 5 billion whereas of non-life insurance will be set at Rs 3 billion.
