The Nepal Non-Life Insurance Business Association has stated that the existing system of not being able to sell shares of the company even after one year after the directors of the insurance company has left office is impractical.

According to rule 38 (1 a) of the Securities Registration and Issuance Regulations 2079, the provision of not being able to buy and sell the shares of the related company during the tenure of the position or for one year after the vacate from such position is impractical. The Nepal Securities Board has drawn the attention of the provision that shares owned by directors cannot be sold in the company for 1 year even after resignation.

We would like to inform you that the share sale arrangement is very impractical. The provision of not being able to sell shares based on the fact that the directors are also investors like all the remaining shareholders in the company and are elected by the general meeting of shareholders and represented on the board of directors on their behalf, was not justified. The statement said.

The official team including the current president of the Nepal Chamber of Commerce, Rajendra Malla, the president of the association, has also requested the chairman of the Securities Board, Santosh Narayan Shrestha, to correct that provision. From the point of view of investment, there is no difference between the financial interests of the other shareholders of the company and the financial interests of the directors, said Malla, the chairman of the association.

The act of depriving the directors from using the same after investing in the company as other shareholders  The union has mentioned that it is not fair. President Malla said that if a businessman cannot sell his movable property, there will be an obstacle in the business, diversification of business and also in essential household work. In the statement issued by the

association, it is said, "Until a person holds the position of a director and for one year after leaving that position, the provision of buying and selling any kind of shares of the same organization has been amended by amending the provisions while holding the position of the director. We ask for an arrangement to sell up to 50 percent of the ownership.