Former Home Minister Sudhan Gurung Purchases Shares of Star and Liberty at 1.5 Times the Price

Former Home Minister Sudhan Gurung has purchased founder shares of Star Microinsurance and Liberty Micro Life Insurance Company at a rate of NPR 150 per share. The process revealed that he acquired these shares through personal loans. However, he did not disclose 25,000 shares of each company in his asset declaration, raising questions about the source of the loan. Kathmandu, April 23.

In the stock certificate documents, it is clear that Gurung bought shares of both companies, originally valued at NPR 100 per share, at a premium of NPR 50 per share. These shares were purchased with borrowed funds, and the omission of related details has prompted scrutiny. Addressing the issue on social media, Gurung stated, “I raised the investment amount through loans.” However, the loan documents presented in the share certificates appear suspicious.

According to Bimal Gyawali, Ward Secretary of Kathmandu Metropolitan City–5, the stock certificates have been authenticated. Ward Chair Bijendra Prajapat explained, “The authentication was done because the amount mentioned in the application and cheque details are present on the certificates.” Gurung obtained a loan of NPR 3,750,000 from Vijay Kumar Shrestha to purchase 25,000 shares of each company.

Gurung acquired the shares during the pre-IPO period of both companies, which has been deemed illegal by the Nepal Securities Board. According to the Securities Act, issuing shares to more than 50 shareholders requires a public issuance. Former Executive Director Niraj Giri stated that there are no legal provisions allowing trading of founder shares at a premium price.