Wednesday, June 20, 2012

Govt allows NRNs to invest in capital market

Good news for the Non Resident Nepalis (NRN), who have been long asking with the government to let them invest in the capital market.
The government has opened the capital market through Mutual Fund for institutional investors including Non Resident Nepalis (NRN) hoping to boost the confidence of the market that has been losing its steam lately.
The Ministry of Finance formally granted approval to the amendment of the Mutual Fund Regulation 2067 today. The capital market regulator had sought an amendment to allow NRN investment companies to hold a certain stake in a mutual fund company as fund managers. Likewise, the amendment has also revised provisions regarding the experience of fund managers and supervisors.
"The amendment has allowed NRN investment companies to hold a 49 per cent stake in an asset management company," informed deputy director at Securities Board of Nepal (Sebon) Muktinath Shrestha. NRNs have already established an investment company to invest in the Nepali capital market and real estate. Global Capital Investment – the investment company formed by NRNs to invest in Nepal – already has a collective fund worth Rs 500 million.
The government had opened capital market investment for NRNs in last fiscal year’s budget. However, due to practical complications regarding the entry and exit of foreign retail capital, the matter had remained in theory only.

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