Minimum price for promoters’ shares of insurance companies fixed
Nepal Stock Exchange (Nepse) has fixed the threshold for transaction of promoters' share of insurance companies.
The front line regulator today notified all the listed life and non-life insurance companies that it will control possible evasion of capital gains tax, while trading promoter's shares.
The minimum trading price of companies with positive net worth has been set at five times of book value or 50 per cent of the trading price of ordinary shares of weighted average price of the previous day, whichever is the lowest, according to the Nepse.
Likewise, Nepse has fixed minimum price of the promoter's shares of insurance companies at 50 per cent of average market price of past 180 days or 50 per cent price of transaction of the same day, whichever is the lowest for the companies with negative net worth.
In recent months, the insurance companies have been witnessing a huge transaction. Some eight life insurance and 14 non-life insurance companies are listed in the secondary market.