Citizen Investment Trust Act, 1991

Provided that this limit shall not apply for establishing its own subsidiary company.

(b) When investing under clause (ch) of sub-section (2), the Fund shall invest up to a maximum of twenty-five percent of the amount in the shares of the concerned company,

(c) When investing in debentures issued by any company or incorporated body under clause (j) of sub-section (2), invest up to a maximum of twenty-five percent of the total debentures.

(4) The Fund may provide credit in the following areas:-

(a) To provide credit to incorporated bodies established under the prevailing law,

(b) To provide credit by operating various types of credit schemes to participating individuals who regularly deposit amounts in the Fund,

(c) To jointly provide credit, in collaboration with any commercial bank or financial institution deemed appropriate by the Fund, on the basis of co-financing, with a mortgage participation agreement as per the agreement between them.

(5) Subject to the prevailing law on securities, the Fund may perform the following functions:-

(a) To invest and reinvest in various types of securities and acquire ownership of securities,

(b) To purchase securities by investing in the primary or secondary market and act as a wholesaler,

(c) To provide loans and advances to participants in the retirement fund and Investment Account Scheme operated by the Fund for purchasing securities,

(d) To encourage incorporated bodies to issue securities and provide necessary services as an underwriter and sales manager.

(6) The Fund may establish subsidiary companies or institutions as necessary for capital market development as follows:-

(a) To establish a company by itself or in collaboration with other financial institutions or bodies for investment expansion,

(b) To establish and operate a mutual fund by itself or with the participation of other incorporated bodies,

(c) If the Fund acquires the assets of any company or institution, to utilize such assets, or operate any project by itself or in collaboration with any other institution, or operate the institution, or establish and operate a new company or institution.

(7) The Fund shall have the following powers regarding the management of immovable property held in the name of the Fund:-

(a) To purchase, acquire, take into ownership or on rent any immovable property in lump sum, installments, or in any other manner, and to sell, barter, or exchange immovable property owned by it,

(b) To construct commercial or residential buildings on land owned by the Fund or by purchasing land, by itself or in collaboration with other incorporated bodies,

(c) To lease out and sell houses, land, or buildings constructed under clause (b) owned by it.

(8) Subject to this Act, the Fund may also perform the following functions:-

(a) To underwrite shares of various incorporated bodies as determined by the Fund, by itself or in collaboration with other merchant banks,

(b) To provide bridge financing facilities or advances to incorporated bodies as specified by the Board,

(c) To provide expert advisory services on financial management of incorporated bodies and alternative opportunities for savings and investment,

(d) To participate in or assist the work relating to the formation, management, and control of incorporated bodies in which the Fund has invested,

(e) To provide capital market advisory services or conduct related training and perform other related functions,

(f) To charge management fees, service fees, commission, brokerage fees, and other fees for services provided by the Fund,

(g) To conduct banking transactions with foreign banks with the approval of Nepal Rastra Bank,

(h) To give approval to perform functions according to the terms of the security or commitment provided as a Trustee regarding the fulfillment of obligations under a contract or agreement of any incorporated body, or to complete the work accordingly,

(i) To take or hold any movable or immovable property as collateral, deposit, hypothecation, or security, and to accept any agreements, contracts, deeds, or documents as necessary,

(j) To monitor and inspect, or cause to be monitored and inspected, as prescribed from time to time, whether the investments made or credits provided under this Act have been utilized properly.

(9) If the principal, interest, and penal amounts of any advance or loan given by the Fund to a person cannot be recovered from the accumulated amount of the concerned person held in the Fund, the Fund may recover such amount to be realized from other movable and immovable property owned by such person under the prevailing law.

inserted by the First Amendment.