Kathmandu. The government is going to set up an alternative development finance fund worth Rs 100 billion.
The government is going to set up such a fund with the participation of some sectors with insurance. The government will set up this fund to invest in the project.
The fund’s head office will be in Kathmandu Valley. The fund can set up a branch office or liaison office within or outside Nepal as per the requirement.
The fund will be a self-governing organized organization with continuous succession. The Fund will acquire a legal personality and, as a legal person, exercise rights, perform duties and discharge its obligations in accordance with the prevailing laws.
The authorized capital of the fund will be Rs 100 billion. The amount will be given to the department in 1 billion units of ordinary shares at the rate of Rs 100.
The paid-up capital of the fund will be Rs 25 billion. The amount will be divided into 250 million units of ordinary shares at the rate of Rs 100 each.
The number of shares will be distributed to the Government of Nepal and other institutions or such institutions considering 100 percent.
Shares will be distributed to the Government of Nepal, Retirement Fund or Fund Management Institution Employees Provident Fund, Citizen Investment Fund and Social Security Fund and Life Insurance, Non-Life Insurance and Reinsurance Company.
The Government of Nepal and other entities interested in buying shares will have to pay the amount for the shares they have agreed to take within a maximum of two financial years. The number of shareholders’ shares will be determined with the consent of the shareholders of such groups. If it is not determined in this way, it will be determined equally. Other provisions relating to the shares of the fund will be in accordance with the prevailing laws.
The government has already prepared a bill to establish an alternative development finance fund.
