After Tihar, the Board is Preparing to Make Extensive Changes in the Investment Sector of Mutual Funds

Kathmandu: The Nepal Securities Board has prepared to reshuffle the mutual fund investment sector after Tihar. In order to address the complaints made by the investors that the demand for shares in the secondary market is low, the board has prepared changes to increase the demand in that sector.

Chairman Hamal informed that the instructions on this matter will be issued after Tihar. If this is done, the board has estimated that the demand for shares in the secondary market will increase to some extent. Currently, the collective investment funds are investing according to the provisions of the Collective Investment Funds Regulations, 2067.

In rule 34 of the same regulation, the area that can be invested is specified. which includes ‘(a) Securities registered with the Board, (b) Securities issued to the public, (c) Securities listed on the stock exchange, (d) Government-owned or controlled entity issued by the Government of Nepal or guaranteed or fully secured by the Government of Nepal. or a bond issued by Central Bank, Treasury bills and other money market instruments, (e) bank deposits, (f) money market instruments, (g) other areas as determined by the board. (2) When designating an area as per clause (g) of sub-rule (1), the board shall also specify the conditions to be followed while investing in such an area.

(3) Regardless of what is written in sub-rule (1), the plan approved by the board to invest only in a certain area shall invest only in that area. The board is now going to change it.