Revelation of CEO's Stock Acquisition at Sun Nepal Life Insurance
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NEPSE trading
It has been revealed that Rajkumar Aryal, the CEO of Sun Nepal Life Insurance, purchased around 80% of the ordinary shares (IPO) allocated for employees. This fact came to light after a complaint was filed with the Nepal Securities Board.
Key Highlights:
Stock Acquisition Incident:
The CEO of Sun Nepal Life Insurance, Rajkumar Aryal, has been found to have bought 80% of the ordinary shares that were allocated for the company's employees.
Investigation Process:
The Nepal Securities Board conducted a preliminary investigation and forwarded the case to the Central Investigation Bureau (CIB) of Nepal Police for further investigation.
According to CIB spokesperson Hobindra Bogati, the investigation is ongoing, and the CEO and other employees have expressed their commitment to rectifying the situation.
Details of Share Distribution:
When the company issued 9.6 million ordinary shares, 480,000 shares were reserved for employees.
The remaining shares were sold to the general public, Nepalis working abroad, and mutual funds at a premium of NPR 239 per share.
Preparation for Redistribution:
Following the Securities Board's directive, the company has initiated the process for redistributing the shares.
According to the company's information officer, Pradeep Gautam, the redistribution process will be completed soon, ensuring that employees receive their rightful shares.
Increase in Market Price and Profit:
The company's share price has reached NPR 622 per share on the Nepal Stock Exchange, resulting in a profit of NPR 522 per share for the CEO.
However, employees will only see actual gains after a three-year lock-in period for selling their shares.
Company's Explanation:
Senior officials of the company have requested 15 days from the CIB to proceed with the redistribution process, which has been approved by the CIB.
Conclusion:
This incident has raised questions of ethics and transparency in the capital market. Clarity on the matter will emerge only after the redistribution process begins, but it has prompted regulatory bodies to push for better governance in the capital market.
