April 19: Insurance Board is preparing to seek clarification from the operator of General Insurance Company Dipendra Agrawal, who has been suspended from his post for investing in the share market against the investment guidelines set by the board.
The Insurance Board, the regulatory body of insurance companies in Nepal, had suspended Agrawal from the board member of the company last Friday (April 16).
Executive Director of Insurance Board, Raju Raman Poudel, confirmed that the board is making preparations to seek clarification from Agrawal.
“We had temporarily removed him from the company’s board a few days ago for investing in the share market by breaching the investment guidelines. Now we will soon seek clarification from him,” Poudel told New Business Age.
“If we do not get a satisfactory answer, we can initiate the process to relieve him off his duties,” added Poudel.
During a field inspection, the Insurance Board found that the company had made investment against the Investment Guidelines 2075. The board decided to take action accordingly. Agrawal is not only a board member of the company but also the coordinator of the investment committee of the company. The Investment Board has concluded that the insurance company was involved in fraudulent investment at the behest of Agrawal.