SEBON licenses to six fund managers

Kathmandu, Sept. 4

The Securities Board of Nepal (SEBON), regulator of capital and commodity market, has licensed six merchant bankers to work as fund managers under specialised investment funds.

At a programme organised at its office in Khumaltar on Sunday, the SEBON handed over the license to the companies to work as a fund manager as per the provisions of the Specialised Investment Fund Regulations, 2018.

The companies that received the licenses are Prabhu Capital Limited, NIBL ACE Capital, NMB Capital, Laxmi Capital, Nabil Investment Capital, and NIC Asia Capital.

With this, the number of companies having license to work as the fund manager under the specialised investment fund regulations has reached eight. Earlier, the SEBON had licensed Global Equity Fund and Awasar Equity Fund as the fund manager.

Issuing a statement on Sunday, Prabhu Capital said that with the approval of SIF as a fund manager, the company has opened the way to provide innovative services like private equity and venture capital in the field of Nepali investment.

The company said that it would help arrange new sources of investment through instruments such as venture capital, private equity funds, hedge funds of domestic and foreign investment to operate the business or the latest enterprise business related to new goods, services, technology or intellectual property.

According to the regulations, private equity fund means a fund injecting initial equity, or other instruments related to equity, or making investments as per the desire of partners of a company.

Likewise, venture capital fund is the fund whose securities are at the initial phase of operation and not listed with stock exchange market, or a fund making equity investments as a form of capital in the business related to innovative knowledge, skills or competency or new goods, services, technology, or intellectual property.

Hedge fund is a fund established to make investments in any sectors with high risks.

Banks and financial institutions, insurance companies, pension funds, international investors, Nepalis and non-resident Nepalis can invest in this fund.

According to the companies, this will help expand the overall capital market by facilitating and attracting foreign direct investment in the country by utilising domestic resources, and it will be beneficial for the overall business sector of the country.

Published in The Rising Nepal daily on 5 September 2022.