Ajod Insurance (AIL) Postpones Rights Offering Proposal; Company Under Inspection on Allegations of Insider Trading

Thu, Apr 8, 2021 10:49 AM on Dividend, Bonus & Rights, Latest,

Ajod Insurance Limited (AIL) has been made to postpone its rights offering.

The company had called its 3rd AGM on 7th Baisakh, 2078. Among other agendas, there was a particularly important agenda to endorse the issuance of the right shares in the ratio 2: 1.

However, the matter became a very confusing case, with investors complaining about unusual activity in the company's shares and suspicions of insider trading. The regulator SEBON itself informed that it received an initial report from NEPSE about the unusual trading of Ajod shares one day before the 50% right shares were declared.

Securities Exchange Board of Nepal (SEBON) has reassured the investors and stakeholders that it is in the process to investigate the alleged insider trading of scrips of Ajod Insurance that took place on Chaitra 16, 2077. SEBON has formed an investigating committee under the leadership of its director and will bring all the culprits under appropriate punitive action if found guilty.

In response to this event, Beema Samiti ordered the company to postpone its rights offering.