Section 45: Prospectus and Issue of Shares

1) An insurer shall, before making a public offer of its securities, have to submit the prospectus duly approved by the Securities Board to the Nepal Insurance Authority.

2) Unless the prospectus is submitted pursuant to sub-section (1), the said insurer or anyone on its behalf shall not be allowed to publish the prospectus of such insurer.

3) Notwithstanding anything contained in subsection (1), unless the Nepal Insurance Authority receives a written notification of the approval from the securities board to register the prospectus, the authority shall not register such prospectus.

4) An insurer shall issue its shares to the general public only after competition of one year of its insurance business. While making such an issue, the insurer shall have completed an audit of its previous year.

5) Notwithstanding anything mentioned in prevailing laws, an insurance company, while calling upon application from the general public for subscription of its shares, shall demand payment of a hundred per cent amount of the face value of its shares along with its application.