The Nepali capital market might see institutional investors soon.
Citizens' Investment Trust (CIT), Employees' Provident Fund (EPF) and Rastriya Beema Sansthan (Insurance Board) have agreed -- in principal -- to invest in the market.
During a discussion held here today between these institutions and Securities Board of Nepal (Sebon) and Nepal Stock Exchange Ltd, they agreed to invest in the capital market. Sebon has shown confidence that the entry of the institutional investor in the market will boost the confidence of general investors as it will help balance the market.
Currently, there are around 1.4 million investors involved in the market and there is no institutional investor. "If institutional institutions get involved in the capital market, the supply and demand mechanism will be balanced and the market can be developed," said the board.