Kathmandu. The Ministry of Finance has increased the capital of the Alternative Finance Fund. The Ministry of Finance has amended the proposed draft of the fund and increased the total capital from 50 billion to 100 billion.
The proposed law initially drafted by the Ministry of Finance stated that there would be a capital of 50 billion and 15 percent investment would be from the general public. However, before the law was submitted to the Council of Ministers, the capital and the right of the general public to invest were amended and removed. Along with the investment rights of the general public, the provision allowing employees working in the fund to invest has also been removed.
The ministry has reduced the right of the general public to invest in the fund to get rid of the hassle of having to make public every account of income and expenditure every quarter when issuing shares to the public.
According to the proposed law, the authorized capital of the fund will be one trillion rupees. It is mentioned that this amount will be divided into one billion ordinary shares at the rate of one hundred rupees. The paid-up capital of the fund will be 25 billion rupees and the amount will be divided into 250 million ordinary shares at the rate of 1 rupee each.
According to the new proposed law, the Government of Nepal will hold 51 percent of the shares.
Similarly, it is mentioned that the Employees Provident Fund, Citizens Investment Fund, and Social Security Fund will have to contribute 25 percent. Similarly, life insurance, non-life and reinsurance companies will have to deposit 24 percent.
It is mentioned that the Government of Nepal and other institutions purchasing shares must repay the amount for the shares they have agreed to buy in a maximum of two installments within two years.
This was the previous Draft
It was mentioned that the authorized capital of the fund would be fifty billion and that amount would be divided into one hundred and fifty million ordinary shares at the rate of one hundred rupees. It was proposed that the paid-up capital of the fund would be ten billion and that amount would be divided into ten million ordinary shares at the rate of one hundred rupees.
In which the Government of Nepal would take 35 percent of the shares and the international intergovernmental financial institution or international non-governmental financial institution or foreign bank or financial institution would hold 25 percent of the shares. Similarly, it was arranged that a total of 15 percent shares could be invested compulsorily from the Employees Provident Fund, Citizens Investment Fund and Social Security Fund.
10 percent shares were allocated for life insurance companies, non-life insurance companies and reinsurance companies. Similarly, it was mentioned that 15 percent shares would be issued to the general public. According to which, it was arranged that 75 million shares, i.e. shares worth 7.5 billion rupees, would be allocated at the rate of 100 rupees per share. It was mentioned that 0.25 percent of the 15 percent allocated to the general public, i.e. 187,500 shares worth 187,500 thousand, would be allocated to the company’s employees.
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