Non-Life Insurance Business Association Raises Concerns Over Share Sale Restrictions for Directors

The Nepal Non-Life Insurance Business Association has raised concerns with the Securities Board of Nepal regarding a provision in the Securities Registration and Issuance Regulations 2079, which prevents directors from selling shares of their company for one year after resignation. The association views this rule as impractical, arguing that directors, like other shareholders, have invested in the company and should be allowed to sell shares.

President Rajendra Malla emphasized that this restriction hinders business diversification and personal financial flexibility. The association has requested that the rule be amended to allow directors to sell up to 50% of their shares while in office. They also warn that the current regulation could negatively impact the investment environment and deter foreign investment.