Kathmandu. The path to investment in Nepal’s capital market is about to open for non-resident Nepalis. The government has already made arrangements for the Securities Board of Nepal to issue foreign currency bonds and debentures for transactions only among non-resident Nepalis through the Securities Registration and Issuance (Seventh Amendment) Regulations, 2080.
The study committee formed by the Securities Board of Nepal has suggested that NRNs should be allowed to invest in the secondary market and be given the facility to repatriate a certain portion of the income received from such investments annually.
The report prepared by the study committee led by Sujan Kumar Kafle, a member of the Board of Directors, states that in the case of remittance of profits and dividends earned from investments, it is appropriate to make arrangements to repatriate up to one million Nepalese rupees annually, with the approval of the concerned body, as prescribed by the regulatory body. That is, the study committee has recommended that there should be a policy and legal arrangement to allow NRNs to repatriate up to one million rupees annually from the profits earned by investing in the secondary market.
Previously, there was a provision for NRNs to invest in the capital market through investment funds. Now, the study concludes that NRNs should be allowed to invest individually.
The committee has also concluded that there should be no limit on the withdrawal of NRNs’ initial investment. ‘It would be appropriate to have a provision where there is no limit on the withdrawal of initial investment made by non-resident Nepalis in Nepal’s secondary securities market instruments.’ That is, if an NRN initially brings Rs 10 million for investment in the capital market, then there should be no limit on the withdrawal of that amount.
How much amount will NRNs be allowed to invest in the capital market? The suggestion also mentions that the Securities Board of Nepal should be given the facility to determine the limit itself from time to time.
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