Section 32: Investment of Fund Amount

1) The Committee may mobilize the stock and assets of the Fund in any or all sectors as stated below by acting within the scope of the investment procedures endorsed by the Government of Nepal:

(a) Invest in the Government of Nepal bonds and purchase or sell such bonds,

(b) Invest in the fixed accounts or long-term deposit schemes of banks or financial institutions of class A category licensed to carry out financial transactions under the prevailing law relating to banks and financial institutions,

(c) Invest in shares of banks, financial institutions, and other companies with limited liabilities,

(d) Lend loans in the sectors determined as appropriate by the Committee jointly with banks or financial institutions established as per prevailing law on condition of division of collateral based on co-financing as per mutual agreement,

(e) Invest in debentures issued by companies or organized institutions established as per the prevailing law and determined as appropriate by the Committee,

(f) Invest in approved mutual funds,

(g) Identify appropriate venues and construct buildings for commercial purposes and rent them out,

(h) Give loans to companies or organized institutions founded under the prevailing law by setting down terms and conditions and interest rate on the guarantee of banks or financial institutions established under the prevailing law,

(i) Invest in sectors determined as appropriate by the Committee, without adequate collateral or guarantee,

(j) In the event of assets acquired in the recovery of loan dues to the Fund, the Fund, on its own or in collaboration with other institutions, shall manage the assets to utilize such assets.

(k) Issue loans as specified to the workers, self-employed persons, and individuals in government service or drawing remuneration from government funds, who have enrolled in the social security scheme,

(l) Perform other tasks related to the investment of the Fund’s amount.

2) While investing in shares pursuant to Clause (c) of sub-section (1), it should be done without exceeding fifteen per cent of the issued capital of the said bank or financial institution. While investing in debentures pursuant to Clause (e) of sub-section (1), it should be done without exceeding ten per cent of the total debentures issued by such company or organized institution.

3) While investing the amount of the Fund pursuant to sub-section (1) in any sector, it should be done without exceeding 20 percent of the amount in the Fund.