General Insurance Association of Nepal Urges Revision of Share Trading Restrictions for Directors

The General Insurance Association of Nepal, established in 2072, represents investors in non-life insurance companies in Nepal.

The association is concerned about a rule under the Securities Registration and Issuance Regulations 2079, which prohibits directors from buying or selling company shares during their tenure and for one year after leaving the position.

The association argues that this rule is overly restrictive and unfairly discriminates against directors, who are also investors like other shareholders. They highlight that, unlike in Nepal, directors in other countries, including India, can sell their shares by announcing in advance.

The association urges the regulatory body to amend this rule, allowing directors to sell up to 50% of their shares with prior notice, to address personal or business needs.