NEPSE Suspends Trading of Citizen Life Insurance Company Shares Over Dividend Declaration Issues

The Nepal Stock Exchange (NEPSE) has announced a temporary suspension of trading in the securities of Citizen Life Insurance Company Limited (CLI) following a series of miscommunications and regulatory issues surrounding its recent dividend declaration.

In a recent development, the NEPSE issued a notice detailing the events that led to the suspension. According to the notice, CLI's board of directors initially declared a dividend on Baishakh 23, 2081, which was subsequently retracted two days later during their 107th board meeting held on Baishakh 25, 2081. The proposed dividend had failed to receive necessary approval from the Nepal Insurance Authority, leading to its cancellation.

According to the Securities Listing Regulations, 2075, if notices, information, and decisions affecting securities prices are created, the relevant listed organization must submit them to NEPSE on the same day or the next day before the opening of business.

NEPSE's decision to suspend CLI's trading activities is aimed at protecting investor interests and maintaining the integrity of the securities market. The suspension will remain in effect until further clarification is provided by Citizen Life Insurance. NEPSE has requested that CLI submit a detailed clarification regarding the reasons behind the inconsistencies in their dividend announcements within three working days.