PRIN's Share Trading Halted; NEPSE Requests Explanation Within Three Days

The securities trading of Prabhu Insurance Limited (PRIN) has been suspended by the Nepal Stock Exchange (NEPSE).

According to NEPSE, the non-life insurance company's board of directors (BOD) meeting held on 2080/03/27 decided for the issuance of right shares. However, the information of the same was made available to NEPSE at a later date on 2080/04/04.

Therefore, the securities trading of the company has been halted by the stock exchange alleging the company of intentions of spiking its share prices in line with the existing laws.

NEPSE has asked for an explanation into the matter from PRIN, within three days of the publication of the press release by NEPSE, notifying of the same.

In a press release issued by PRIN earlier, it stated that in line with the amendments made by the Nepal Insurance Authority (NIA) in the existing laws, and as specified to raise the paid-up capital of insurance companies to Rs. 2.50 Arba by the end of Ashad, 2080, the company is intensely discussing the prospect of merger or acquisition. However, as of now despite continued efforts, no preliminary agreement has been penned with another non-life company.

Following the upset, the 226th meeting of the Board of directors of the company held on Ashad, 27, 2080, has decided to present a proposal to Nepal Insurance Authority (NIA), for the issuance of right shares which would amount to the insufficient amount in the current paid up capital to meet the set bar, as an alternative.