Section 2: Definitions

Unless the subject or the context otherwise requires, in this Act,

(a) “Currency” means any currency notes, postal orders, postal notes, money orders, cheques, drafts, travellers cheques, letters of credit, bills of exchange, promissory notes and credit cards, and this term also includes similar other monetary instruments as may be prescribed by the Bank by publishing and broadcasting a public notice,

(a1) “Currency notes” means banknotes in circulation as cash, and this term also includes coins,

(b) “Foreign currency” means any currency other than the Nepalese currency, and this term also includes special rights to draw funds (Special Drawing Rights) from the International Monetary Fund, the Asian Currency Unit, the European Currency Unit and such other instruments as may be prescribed by the Bank, by publishing and broadcasting a public notice,

(c) “Nepalese currency” means a currency tendered in Nepalese Rupee,

(c1) “Convertible foreign currencies” means any foreign currencies as may be designated as convertible foreign currencies by the Bank by publishing and broadcasting a public notice,

(d) “Foreign exchange” means a foreign currency, deposits, credits and balances of all types which are paid or received in a foreign currency, foreign securities and cheques, drafts, travellers cheques, electronic fund transfers, credit cards, letters of credit, bills of exchange and promissory notes which are in international circulation and are or can be paid in a foreign currency, and this term also includes any other such monetary instruments as may be prescribed by the Bank by publishing and broadcasting a public notice,

(d1) “Foreign exchange transaction” means purchase, sale, lending, borrowing of foreign exchange or receiving or giving of foreign exchange in any other manner, and this term also includes the act of giving permission by the Bank to convert foreign exchange,

(d2) “License” means a license obtained by any person, firm, company or body from the Bank pursuant to Section 3 to carry on the foreign exchange transaction,

(e) “Licensee” means a person, firm, company or body that has obtained the license from the Bank pursuant to Section 3 in order to carry on the foreign transaction,

(f) “Securities” means any shares, stocks, bonds, debentures, debenture stocks issued by anybody corporate or unitary saving scheme certificate or collective saving scheme certificate or transferable deposit certificate issued by anybody corporate in accordance with the prevailing law, and this term also includes such other securities or receipts relating to the deposit of securities and rights and powers relating to securities as may be specified by the Government of Nepal by a Notification in the Nepal Gazette,

(g) “Foreign securities” means any securities issued or released in any country other than Nepal,

(g1) “Foreign investment” means the following investment made by a foreign investor in any firm, company or body:

(1) Investment made in shares,

(2) Investment made in deposits,

(3) Reinvestment of income earned from the investment as referred to in Clauses (1) and (2),

(4) Investment made in the form of a loan or loan facility.

(g2) “Technology transfer” means the transfer of technology to be made by entering into an agreement between any firm, company or body and a foreign investor in relation to the following matters:

(1) Use of the right to any technology, of specialisation, formula, process, patent or technical know-how of foreign origin,

(2) Use of any trademark of foreign origin,

(3) Acquiring any foreign technical, consultancy, management and marketing service.

(g3) “Foreign investor” means any foreign person, firm, company or body making a foreign investment or technology transfer and this term also includes a foreign government or international agency,

¹(g4) “Investment abroad” means the following investment made by a company or establishment established in Nepal abroad:

(1) Investment made in shares or purchase of shares of a limited liability partnership, firm, investment fund, company or similar entity established with limited liability, which is not listed on a foreign stock exchange but is incorporated or registered abroad,

(2) Investment made in shares or purchase of shares up to twenty percent of the paid-up capital of a limited liability partnership, firm, investment fund, company or similar entity established with limited liability, which is incorporated or registered abroad, and is listed on a foreign stock exchange,

However, such a limit shall not apply to the investment of the amount earned by a Nepali citizen during his/her stay abroad.

(3) Investment made by a company or establishment incorporated in Nepal to open or register its branch or liaison office abroad,

(4) Amount deposited in a bank deposit account abroad by a company or establishment incorporated in Nepal, or

(5) Reinvestment of income received from investment according to sub-clauses (1) and (2).

(h) “Gold” includes gold in the form of coins, whether in circulation legally or not, Dhikkas and plates of gold, whether processed or not and ornaments and goods made fully or substantially of or from gold,

(i) “Silver” includes silver in the form of coins, whether in circulation legally or not, Dhikkas and plates of silver, whether processed or not and ornaments and goods made fully or substantially of or from silver

(j) “Bank” means the Nepal Rastra Bank,

(k) “Prescribed” or “as prescribed” means prescribed or as prescribed in the rules framed under this Act,

(l) “Owner in relation to any securities” includes a person who has right to sell, dispose or transmit the securities or a person who holds the securities in his or her name or a person who obtains dividends or interests of the securities on behalf of him or her or other person or a person who has any right in the securities, and where the securities are held in any trust or the dividends or interest thereof are deposited into any trust fund, a person who has the right to operate or cancel or alter that trust and any terms thereof with or without consent of any other person or a person who has the right to control the investment of trust money,

(m) “Investigating officer” means the investigating officer designated pursuant to Section 11A,

(n) “Person residing in Nepal” means any of the following persons:

(1) A citizen of Nepal, other than a citizen of Nepal who is residing outside Nepal for a period exceeding the period specified by the Bank by publishing and broadcasting a public notice in the course of employment, trade or other business or for any other purpose,

(2) A non-Nepalese citizen who is residing in Nepal for a period exceeding the period specified by the Bank by publishing and broadcasting a public notice in the course of employment, trade or other business.

(o) “Person residing outside Nepal” means a person other than a person residing in Nepal.

^{1Added by the Act to Amend Certain Nepal Acts Relating to Improving the Economic and Business Environment and Promoting Investment, 2081.}