Securities Board of Nepal (Sebon) has made it clear it has not yet approved the premium price that  Nepal Life Insurance Company (NLIC) has fixed for its Further Public Offering (FPO) although it lifted  a temporary halt on trading of the insurer’s shares in the secondary market.

Sebon said the ban on NLIC’s share trading was lifted considering that it would take some time to introduce a uniform policy on premium price fixation of listed companies for FPO. “As the companies must follow the policy to be prepared, the board has asked the investors to be cautious about the fact that the premium price fixed by the company may change,” the board said in a statement.

Earlier on Wednesday, Sebon had informed the ban on share trading of NLIC was lifted from Thursday.

The announcement influenced share trading of NLIC when market opened on Thursday, according to stockbrokers. The per share price of NLIC jumped by Rs107 to Rs4,595 from previous closing of Rs4,488 on Thursday.

The price had at one point had reached as high as Rs4,936 during the day. But it fell down following a second Sebon notice cautioning investors about pending decisions related to the FPO and premium price. “We have fulfilled the regulatory requirements and are hoping the regulator will take a rational approach while issuing the policy on premium price fixation,” said NLIC CEO Bivek Jha. “We will welcome the policy if it follows the notion of fair and equitable treatment to investors.”

According to Jha, Sebon has notified the company that a guideline on pending issues will be forwarded soon.