chhatramani/nepal_legal_acts_corpus_english huggingface dataset:
Citizen Investment Trust Act, 1991

18. Arrangement for Depositing Amount in Investment Account Scheme or Citizen Unit Scheme: amended by the First Amendment. (1) Nepali citizens residing in Nepal or abroad or any other foreign investor may deposit amounts in the Investment Account Scheme or Citizen Unit Scheme as determined by the Fund.

(2) While depositing amounts in the Investment Account Scheme and Citizen Unit Scheme under sub-section (1), Nepali citizens residing abroad or any other foreign investor may also deposit in convertible foreign currency.

(3) Before operating a scheme with terms requiring the deposit of amounts in foreign currency in the Investment Account Scheme or Citizen Unit Scheme and repayment also in foreign currency, the Fund shall obtain prior approval from the Government of Nepal and Nepal Rastra Bank. 18A. Self-Employed Person May Deposit Amount: inserted by the Second Amendment. (1) A self-employed person may deposit amounts in the Fund under the Investment Account Scheme pursuant to Section 18 as prescribed.

(2) The provisions relating to the collection of amounts deposited in the Fund under sub-section (1), the process of payment of amounts deposited in the Fund, and the facilities received from the Fund shall be as prescribed. Explanation: For the purpose of this Section, "self-employed person" means a person engaged in a profession or occupation including engineers, doctors, legal practitioners, auditors, or an employee associated with such person on a temporary or service contract basis, and also includes a person engaged in privately operated businesses including agriculture, industry, and service sectors, a person earning income from employment, or a person involved in foreign employment. 19.
Citizen Investment Trust Act, 1991

19. Distribution of Returns: amended by the Second Amendment. (1) The rate of return to be given each fiscal year on the amounts deposited in programs operated under the Investment Account Scheme or Citizen Unit Scheme pursuant to Sections 15, 16, 17, and 18A shall be according to the criteria determined by the Fund from time to time.

(2) The payment of the amount deposited in the Investment Account Scheme under Section 17 and the amount of return to be provided on such amount under sub-section (1) shall be as prescribed.

(3) If the Fund is unable to make payment of the amount under sub-section (2), the Government of Nepal shall make such payment.

(4) From the income earned from the investment of the amount deposited in the Investment Account Scheme or Citizen Unit Scheme under Section 18 inserted by the Second Amendment. or Section 18A, after deducting expenses and service fees as prescribed, amounts to be kept in the Risk Investment Reserve Fund and Dividend Equalization Fund as prescribed, inserted by the First Amendment. and capital depreciation incurred on investment instruments, the remaining amount shall be distributed proportionally as returns to the respective investors. 20. Unit Certificate: (1) The Fund shall give a Unit Certificate to each Unit Holder in the prescribed format.

(2) A Unit Certificate may be exchanged, transferred, or name-transferred subject to the prevailing law.

(3) The procedure for name transfer, registration, or exchange of Unit Certificates shall be as prescribed. Chapter-4
General Meeting and Board of Directors

21. General Meeting: (1) An initial General Meeting shall be held within one year of the establishment of the Fund.
Citizen Investment Trust Act, 1991

Chapter-4
General Meeting and Board of Directors

21. General Meeting: (1) An initial General Meeting shall be held within one year of the establishment of the Fund. Thereafter, an Annual General Meeting shall be held within six months of the end of each fiscal year.

amended by the Second Amendment. (2) At least twenty-one days before a General Meeting under sub-section (1), the Fund shall give notice to all shareholders specifying the place, date, and time of the meeting along with the agenda, and such notice shall also be published at least twice in national daily newspapers.

(3) If at least ten percent of the total shareholders, representing at least sixty percent of the total number of shares of the Fund, are present in person or by proxy, the quorum for the General Meeting shall be deemed to have been met.

(4) If a meeting cannot be held due to the lack of attendance of shareholders as specified in sub-section (3), upon giving at least seven days' notice and calling another meeting, there shall be no bar to holding the meeting if at least five shareholders entitled to vote, representing at least thirty-three percent of the total number of shares, are present in person.

inserted by the Second Amendment. (4A) While giving notice for calling another meeting under sub-section (4), such notice may be given through any national daily newspaper, and the notice so given shall be deemed to be a proper notice.

(5) The right to participate and vote in the meeting and other provisions relating to the conduct of the meeting shall be as prescribed. 22. Right to Vote for Appointment of Directors: (1) When voting for the appointment of Directors, each shareholder shall be entitled to a number of votes equal to the number of shares taken by him/her multiplied by the number of Directors to be appointed, and the shareholder voting in that manner may cast all his/her votes for a single candidate or in the manner he/she specifies for one or more candidates.

(2) Notwithstanding anything written in sub-section (1), if the Government of Nepal and incorporated bodies nominate Directors under Section 25, they shall not be entitled to vote in the voting held under this Section. 23.
Citizen Investment Trust Act, 1991

23. Subjects to be Presented and Discussed in General Meeting: (1) In the Annual General Meeting, the Board shall present the audited balance sheet and the profit and loss account of the previous fiscal year.

(2) If a shareholder or shareholders representing at least five percent of the total number of votes wish to present any subject for discussion and decision in the General Meeting, they may do so by submitting an application to the Chairperson before the notice for holding such General Meeting is issued.

(3) In addition to the subjects presented under sub-sections (1) and (2), consideration shall be given in the General Meeting to the accounts of the Fund, the report of the Board, the audit report, the profit to be distributed among shareholders, amended by the First Amendment. the appointment and remuneration of Directors and Auditors, etc.

(4) Notwithstanding anything written in sub-sections (1), (2), and (3), in the initial General Meeting called under sub-section (1) of Section 21, the Board shall present a report containing details of the transactions made by the Fund before such meeting.

(5) Other provisions relating to motions, discussions, and decisions to be presented in the General Meeting shall be as prescribed. 24. Extraordinary General Meeting: (1) The Board may call an Extraordinary General Meeting if it deems necessary.

(2) If, during the audit of the Fund, it is deemed necessary for any reason to call an Extraordinary General Meeting, the Auditor may request the Board to call such meeting, and the Board shall call the General Meeting accordingly.

(3) If at least twenty-five percent of the total number of shareholders holding at least ten percent of the paid-up capital of the Fund request in writing to the Fund, stating the reason, to hold an Extraordinary General Meeting, the Board shall call an Extraordinary General Meeting of the Fund.

(4) If it is deemed necessary to call an Extraordinary General Meeting upon inspection or for any other reason, the Government of Nepal may cause such meeting to be called by the Board.

amended by the Second Amendment. (5) When calling an Extraordinary General Meeting under this Section, a notice shall be published at least twice in national daily newspapers at least fifteen days in advance, specifying the place, date, time, and agenda of the meeting.

amended by the Second Amendment. 25.
Citizen Investment Trust Act, 1991

25. Formation of Board of Directors: (1) The Fund shall have a Board of Directors comprising a Chairperson and Directors as follows:-

(a) A person appointed by the Government of Nepal from among persons having special knowledge and experience in banking, insurance or capital market - Chairperson

(b) One gazetted first class officer of the Ministry of Finance, Government of Nepal - Director

(c) The Administrator of the National Insurance Corporation - Director

(d) The General Manager of Nepal Stock Exchange Limited - Director

(e) One person elected or nominated as determined by other banks and financial institutions from among them - Director

(f) One person elected from among the general shareholders - Director

(g) One expert appointed by the Ministry of Finance, Government of Nepal, from among persons having special knowledge and experience in banking, insurance or capital market - Director

(2) While forming the Board under sub-section (1), at least one woman must be represented.

(3) The term of office of the Chairperson and the Directors under clauses (f) and (g) of sub-section (1) shall be three years. They may be re-appointed or re-elected.

(4) Notwithstanding anything written in sub-section (3), Directors holding office at the time of commencement of this sub-section may continue in their office for the term existing at the time of their nomination or election.

(5) Notwithstanding anything written elsewhere in this Section, Directors under clauses (a) and (g) of sub-section (1) may be removed from office at any time. Provided that before removing such Director, he/she shall be given a reasonable opportunity to present a defense.

(6) If a position of Director becomes vacant before the completion of the term under sub-section (3), such position shall be filled for the remaining period through the same procedure by which it was previously filled.

(7) Notwithstanding anything written elsewhere in this Section, if any change is made in the share capital of the Fund under Section 5, the Government of Nepal may, by publishing a notice in the Nepal Gazette, change the number of Directors from among shareholders as necessary, not exceeding seven.

(8) An authorized officer of the Fund designated by the Board shall act as the Secretary of the Fund. 26.
Citizen Investment Trust Act, 1991

26. Disqualification for Appointment or to Continue in Office as Director: (1) The following persons shall not be eligible for nomination or election to the position of Director:-

(a) One who has not attained the age of twenty-one years,

(b) One who is insane or mentally deranged,

(c) One who has become insolvent due to inability to pay debts to creditors,

(d) One who has been convicted by a court for theft or fraud of any kind, or for unauthorized destruction or misuse of property entrusted to him/her,

(e) One who has a personal interest of any kind in any contract or agreement of the Fund, or

(f) One who holds the position of Director in any bank or financial institution,

inserted by the First Amendment. (g) A person or institution holding office as a member or representative of the securities market.

(2) The following persons shall not continue in office as Director:-

(a) If a situation arises making him/her ineligible for nomination or election to the position of Director under sub-section (1),

(b) If he/she is absent from three consecutive meetings of the Board without giving notice to the Board for a valid reason,

(c) If he/she does any act against the Board or the decision of the Board,

(d) If his/her resignation from office is accepted,

(e) If he/she is proven by a court to have acted dishonestly or mala fide in the business of the Fund, or

(f) If he/she commits any offense punishable under this Act.

(3) Notwithstanding anything written in sub-sections (1) and (2),-

(a) The disqualification mentioned in clauses (a) and (b) of sub-section (1) shall not apply to a person unless certified by a government doctor.

(b) A person mentioned in clause (e) of sub-section (1) may be nominated to and continue in the position of Director if approval is obtained from the Government of Nepal.

(c) Before disqualifying any person from being nominated or elected to or continuing in the position of Director, he/she shall be given a reasonable opportunity to present evidence of his/her defense. 27. Remuneration and Allowances of Directors: (1) The meeting allowance payable to Directors for attending meetings shall be as prescribed.

(2) omitted by the Second Amendment. 28. Powers of the Board of Directors: (1) Subject to this Act or the regulations made under this Act, it shall be the duty of the Board to manage the entire business of the Fund, exercise powers and perform duties, and conduct, direct, supervise, and control the general administration of the Fund.

(2) The Board may delegate all or some of the powers exercisable by it to any Director, Sub-Committee, Executive Director, or any authorized officer of the Fund. 29.
Citizen Investment Trust Act, 1991

29. Meeting of the Board: (1) A meeting of the Board shall be held on the date, place, and time specified by the Chairperson.

(2) The meeting of the Board shall be held at least eight times a year, and the interval between two meetings shall not exceed two months.

(3) Notwithstanding anything written in sub-section (2), if at least one-third of the Directors make a written request with the list of subjects sought to be discussed, the Chairperson shall call a meeting of the Board within seven days.

(4) No meeting of the Board shall be held without the presence of at least a majority of the Directors.

(5) The Chairperson shall preside over the meeting of the Board, and in his/her absence, a Director chosen by the Directors from among themselves shall preside over the meeting of the Board.

(6) A decision of the majority in the meeting of the Board shall be valid, and in case of a tie, the person presiding may cast a casting vote.

(7) Details of the Directors present at the meeting of the Board, the subjects discussed, and the decisions made in that regard shall be recorded in a separate register.

(8) Other matters relating to the meeting of the Board may be determined by the Board itself. 30. Accountability of Directors: (1) If the Board knowingly or negligently causes or causes to be caused loss or damage to the Fund, such loss or damage shall be recovered proportionally from the personal estates of each Director. Provided that a Director who has expressed his/her objection in writing to the act or thing from which such loss has occurred, or who was unaware of such act or thing, shall not be liable to bear such loss or damage.

(2) Except with the approval of the Government of Nepal, no Director shall do or cause to be done any act through the Fund that results in personal benefit to himself/herself.

(3) Any Director shall be personally responsible for acts done exceeding his/her jurisdiction. 31. Validity of Acts Done: If it is later discovered that any provision under this Act has not been complied with in relation to the election or nomination of a Director, the acts done by such Director prior to such discovery shall not be rendered invalid solely on that ground. Chapter - 5
Functions, Duties and Powers of the Fund

amended by the Second Amendment. 32.
Citizen Investment Trust Act, 1991

Chapter - 5
Functions, Duties and Powers of the Fund

amended by the Second Amendment. 32. Functions, Duties and Powers of the Fund: (1) The Fund may, as a Trustee, provide efficient investment services to savers and deliver higher returns by operating the following programs:-

(a) To operate programs as prescribed in the field of social security such as contribution-based retirement pension, health insurance, either by itself or in collaboration with any other institution,

(b) To operate a contribution-based term life insurance fund for civil servants, military and police personnel, teachers, and employees of other incorporated bodies,

(c) To operate gratuity funds and pension programs as prescribed.

(2) The Fund may invest the amounts deposited in the Fund for operating voluntary or compulsory retirement funds and Investment Account Schemes, for a specified term, in the following areas:-

(a) To invest in cash certificates or time-bound fixed deposits of any commercial bank established under the prevailing law,

(b) To make loan investments in any incorporated body on terms specified by the Fund, with the guarantee of any commercial bank recognized as class "A" by the Government of Nepal or Nepal Rastra Bank,

(c) To invest in shares of any commercial bank, financial institution, insurance company, or such institution or company deemed suitable by the Fund,

(d) To invest in infrastructure construction projects undertaken under the public-private partnership model with the Government of Nepal or Provincial Government and the private sector,

(e) To invest in bonds issued by the Government of Nepal, from amounts deposited in the Investment Account Scheme, Citizen Unit Scheme, or other programs operated by the Fund, or from the Fund's own resources,

(f) To invest, with the approval of Nepal Rastra Bank, amounts collected from Nepali citizens residing abroad in the Unit Scheme in foreign securities in collaboration with any domestic or foreign company or incorporated body,

(g) To invest in electricity generation or transmission or other infrastructure construction established or promoted by the Government of Nepal, Provincial Government, or an incorporated body or entity under the full or partial ownership or control of the Government of Nepal or Provincial Government,

(h) To invest in debentures issued by any company or incorporated body.

(3) Notwithstanding anything written in sub-section (2), while investing, the Fund shall do as follows:-

(a) When investing in shares of any institution under clause (g) of sub-section (2) or becoming a founder shareholder, invest up to a maximum of twenty-five percent of the issued capital of such incorporated body or company.
Citizen Investment Trust Act, 1991

32A. Fund May Act as Debenture Trustee: (1) The Fund may act as a Trustee concerning debentures issued or to be issued by any incorporated body.

amended by the Second Amendment. (2) Other provisions relating to the functions, duties, powers, and obligations to be fulfilled by the Fund as a Debenture Trustee under sub-section (1) shall be as prescribed.

inserted by the First Amendment. 32B. Fund May Act as Custodian: (1) The Fund may perform the functions of taking custody, purchasing, selling, or arranging purchase and sale of securities, name transfer, registration, and collection of interest or profit of securities on behalf of domestic or foreign investors.

(2) While acting as a Custodian under sub-section (1), the Fund shall complete the procedure as prescribed. 33. Power to Impose Conditions: (1) When transacting with any incorporated body or granting credit to any incorporated body, the Fund may require deeds to be executed imposing conditions as necessary for the protection of its interest and the proper utilization of the credit or facility provided by it.

(2) Notwithstanding anything written in the prevailing law, while having deeds executed under sub-section (1), the Fund may set terms allowing it to fix any period of maturity, require the borrowing incorporated body to repay the principal and interest of the credit already taken in case of breach of conditions set by the Fund, or recover from the property and guarantee taken by deed.

(3) While granting credit to any incorporated body, the Fund may impose conditions to have a deed executed for the total credit amount to be given to such incorporated body at once, and to provide the credit in installments as prescribed, in the form of cash, cheque, letter of commitment or letter of credit, calculating interest from the date the incorporated body receives the installment.

(4) While imposing conditions under sub-section (1), the Fund may also impose the condition of appointing a Director to the Board of Directors of any incorporated body, and if such condition exists, notwithstanding anything written in this Act or the prevailing law, it shall be accordingly. 34.
Citizen Investment Trust Act, 1991

34. Special Exemptions to the Fund: (1) When the Fund takes collateral by executing a deed from the borrowing incorporated body or surety, or registers such collateral property in the name of the Fund, or when the Fund buys or sells immovable property, income tax or registration fee shall not be levied on such transaction.

(2) If the total amount receivable by the Fund from the incorporated body cannot be recovered from the assets taken as collateral by executing a deed, the remaining amount may be recovered from other assets of the borrowing incorporated body under the prevailing law.

(3) The right of the Fund over the collateral shall not be extinguished solely on the ground that the Fund did not take possession of the collateral or initiate action to recover the credit within the period specified in the deed by which the Fund took collateral of any property.

(4) If the Fund takes possession of the collateral, uses it, leases it out or contracts it out, or allows others to operate it with profit sharing, according to the conditions mentioned in the deed, such action alone shall not affect the right of the Fund to receive interest and additional charges for default of installments payable to it or the right to sell the collateral.

inserted by the Second Amendment. (5) While registering deeds relating to credit transactions made by the Fund with a person who regularly deposits amounts in the Fund under this Act, registration fee shall not be levied.

inserted by the Second Amendment. 34A. Rights of the Fund to Remain: Notwithstanding anything written in the prevailing law, the right of the Fund over any type of collateral taken while providing credit shall remain valid until the principal and interest of such credit are fully repaid. 35. Rights of the Fund in Case of Breach of Agreement: (1) If any incorporated body breaches the terms of the deed with the Fund by failing to repay any credit, interest, or outstanding advance amount payable to the Fund according to the agreement, or if the Board considers that there is a reasonable cause to control the financial operations of such incorporated body, the Fund may, even if the maturity period under the terms has not expired, control the management and financial operations of the borrowing incorporated body, or take possession of the collateral property or other assets of the borrowing incorporated body and utilize them, lease or contract them out, or sell them by auction, tender, or mutual negotiation, and recover the amount due to it.

(2) If the collateral given by the borrowing incorporated

44.
Citizen Investment Trust Act, 1991

Oath to be taken: Every director, executive director, advisor, member of the technical sub-committee, and officers and employees of the Fund shall take an oath as prescribed before assuming their office. 45. Government of Nepal's power to suspend the Committee: (1) If the Committee is unable to perform the work required to be done under this Act, the Government of Nepal may, by publishing a notice in the Nepal Gazette, suspend the Committee for a maximum period of one year.

(2) If the Committee is suspended pursuant to sub-section (1), the Government of Nepal may appoint any person, committee of persons, or institution to conduct all the work and transactions required to be done by the Committee under this Act.

(3) All work and transactions conducted by the person, committee of persons, or institution appointed to conduct the work and transactions of the Committee pursuant to sub-section (2), in accordance with this Act and the regulations made under this Act, shall be deemed valid as if conducted by the Committee formed under this Act. 46. Communication with the Government of Nepal: The Fund shall communicate with the Government of Nepal through the Ministry of Finance. 47. Annual report: The Committee shall submit the auditor's report and a report on matters related to the work and transactions of the Fund to the Government of Nepal within nine months after the end of the fiscal year. 48. Government of Nepal may give orders or directives: The Government of Nepal may, having regard to the state of the country's currency and capital market and the interests of investors, give necessary orders or directives, and it shall be the duty of the Fund to comply with such orders or directives. 49. Nepal Rastra Bank may give orders or directives: Nepal Rastra Bank may, having regard to the monetary situation of the country, give necessary orders or directives to the Fund from time to time with the objective of enhancing the effectiveness of the Fund. It shall be the duty of the Fund to comply with such orders or directives. Amended by the Second Amendment.50.
Citizen Investment Trust Act, 1991

It shall be the duty of the Fund to comply with such orders or directives. Amended by the Second Amendment.50. Monitoring and Inspection: (1) The Government of Nepal, Ministry of Finance, shall monitor, inspect, and supervise the work, operations, plans, and programs conducted by the Fund as prescribed.

(2) For the purpose of sub-section (1), the Ministry of Finance may designate any gazetted first class officer of the Government of Nepal or an expert in the relevant field as an inspector.

(3) The inspector designated pursuant to sub-section (2) may inspect all books of account, accounts, financial records, documents, or electronic records of the Fund, or demand details or copies thereof.

(4) It shall be the duty of the Executive Director of the Fund and concerned employees to provide the documents or details demanded by the inspector pursuant to sub-section (3).

(5) The inspector designated or appointed pursuant to sub-section (2) shall, after completing the work of monitoring, inspection, and supervision pursuant to sub-section (1), submit a report thereof to the Government of Nepal, Ministry of Finance.

(6) Other arrangements relating to monitoring, inspection, and supervision conducted under this section shall be as prescribed. 51. 52. Special rights of the Fund: The Fund may prescribe the terms of the pension fund, investment management, and other services provided under the investment, Citizens Unit Scheme, and Investor Account Scheme provided by the Fund under this Act, and may fix the commission, service fees, and charges to be levied thereon. Amended by the Second Amendment. Added by the Second Amendment.52A. Special provision relating to investment in fixed deposit: (1) The Fund may invest amounts collected under the Investor Account Scheme, Citizens Unit Scheme, or from other sources in the Fund by depositing them as time-bound fixed deposits in any commercial bank.

(2) Notwithstanding anything contained in the prevailing law, the amount deposited pursuant to sub-section (1), along with interest or any other charges thereon, if any, shall be paid by the bank to the Fund in accordance with the agreement made between the Fund and the concerned commercial bank.

(3) If the bank concerned fails to pay to the Fund the amount invested pursuant to sub-section (1) in accordance with sub-section (2), the Fund may recover such amount in accordance with this Act and the prevailing law. 53. Security of loan investment of the Fund: Notwithstanding anything contained in the prevailing law, if any organized institution to which the Fund has provided credit investment is dissolved, the Fund shall have equal rights over the assets of such organized institution Amended by the Second Amendment.as other secured creditors of such organized institution. Added by the Second Amendment.53A.
Citizen Investment Trust Act, 1991

Added by the Second Amendment.53A. Blacklisting: (1) If any person or organized institution that has entered into a contract with the Fund, is a partner in any kind of contract or lease, has received investment from the Fund, or has taken a loan from the Fund, causes any loss or damage to the Fund or fails to pay any amount due to the Fund within the prescribed period, the Fund may send a letter to the concerned body for blacklisting such person or organized institution in accordance with the prevailing law.

(2) Upon receipt of a letter from the Fund pursuant to sub-section (1), the concerned body shall blacklist such person or organized institution in accordance with the prevailing law and inform the Fund thereof.

(3) The Fund shall not provide any loan, contract or lease, make a partner, or make any kind of investment to the person or organized institution blacklisted pursuant to sub-section (2) for two years after removal from such blacklist. 54. Confidentiality to be maintained: (1) Notwithstanding anything contained in the prevailing law, details of the relationship between the Fund and its clients, and the transactions or accounts of the Fund shall not be disclosed to anyone other than the concerned parties.

(2) Notwithstanding anything contained in sub-section (1), providing access for inspection to a court in connection with any case or other legal proceedings, to an auditor in connection with an audit, or to an inspector deputed in connection with an inspection shall not be deemed a breach of the confidentiality of the Fund's transactions or accounts.

(3) While inspecting the transactions or accounts of the Fund, a court, auditor, or any other person shall not breach the confidentiality of the Fund's transactions or accounts. 55. Fund may be dissolved: The Fund may be dissolved in the following circumstances:

(a) If the Government of Nepal is of the opinion that the Fund is unable to refund the amounts due to be refunded to unit holders under the Citizens Unit Scheme and to investors under the Investor Account Scheme, pay other debts payable, or perform its functions under this Act.

(b) If the Government of Nepal decides to dissolve the Fund for any reasonable cause. 56. Appointment of Liquidator: (1) If the Fund is to be dissolved pursuant to Section 55, the Government of Nepal shall appoint a Liquidator from among persons licensed under the prevailing law Amended by the Second Amendment..
Citizen Investment Trust Act, 1991

56. Appointment of Liquidator: (1) If the Fund is to be dissolved pursuant to Section 55, the Government of Nepal shall appoint a Liquidator from among persons licensed under the prevailing law Amended by the Second Amendment.. Added by the Second Amendment.(2) The work, duties, and rights of the Liquidator appointed pursuant to sub-section (1) shall be the same as those of a liquidator appointed under the Insolvency Act, 2063 (2006).

(3) The Liquidator shall receive remuneration or allowances fixed by the Government of Nepal from the Fund. 57. Order of priority for payment of liabilities: Upon dissolution of the Fund, liabilities shall be paid based on the following priority order:

(a) Expenses incurred in the dissolution,
(b) Remuneration and other amounts due to the employees or workers of the Fund,
(c) Amounts under the Investor Account Scheme, Citizens Unit Scheme, and Group Savings Project,
Added by the Second Amendment.(d) Amounts on account of loans taken and other liabilities of the Fund,
Added by the Second Amendment.(e) Taxes and other amounts payable by the Fund to the Government of Nepal,
Added by the Second Amendment.(f) Amounts on account of shares of preference shareholders,
Added by the Second Amendment.(g) If any amount remains after paying liabilities under this section, such remaining amount shall be paid proportionately to other shareholders. 58.
Citizen Investment Trust Act, 1991

58. Punishment: (1) If any person knowingly makes or causes to be made a false statement in any detail, certificate, receipt for pledged security, or any other document provided to the Fund for the purpose of investment made, credit provided, or any other facility granted by the Fund under this Act, and if the Fund suffers any loss or damage thereby, such person shall be ordered to pay compensation equal to the amount of such loss and shall be liable to a fine of up to Amended by the Second Amendment.fifty thousand rupees or imprisonment for up to Amended by the Second Amendment.three years or both.

(2) If any person breaches confidentiality contrary to Section 54, such person shall be liable to a fine of up to three thousand rupees or imprisonment for up to three months or both.

(3) If any person obstructs or hinders an inspector appointed under Section 50 in his work, or without any reasonable cause prevents the inspection of accounts or documents that the inspector wishes to examine, such person shall be liable to a fine of up to two thousand rupees or imprisonment for up to two months or both.

(4) If any person uses the name of the Fund in any form or advertisement without the written consent of the Fund, such person shall be liable to a fine of up to one thousand rupees or imprisonment for up to one month or both. 59. Power to make regulations: The Fund may, subject to this Act and with the approval of the Government of Nepal, make necessary regulations to regulate its internal work and proceedings. Added by the Second Amendment.60. Power to make procedures: The Fund may, for the implementation of this Act, subject to this Act and the regulations made under this Act, make and implement necessary procedures.
Arms and Ammunition Act, 1962

Arms and Ammunition Act, 2019

Royal Seal Date
2019.10.22

Publication Date
2019.10.23

Acts Amending This Act

1. Judicial Administration Reform Act, 2031 2031.4.18
2. Some Nepal Acts (Amendment) Act, 2043 2043.7.24
3. Judicial Administration Reform (Fourth Amendment) Act, 2043 2043.7.24
4. Arms and Ammunition (First Amendment) Act, 2048 2048.7.11
5. Judicial Administration Act, 2048 2048.2.16

Certification and Publication Date

6. Arms and Ammunition (Second Amendment) Act, 2064 2064.9.22
7. Republic Strengthening and Some Nepal Laws Amendment Act, 2066 2066.10.7
8. Some Nepal Acts Amendment Act, 2072 2072.11.13
9. Some Nepal Laws Amendment, Consolidation, Adjustment and Repeal Act, 2074 2074.6.30

Act No. 54 of the year 2019



An Act Made to Consolidate and Amend the Nepal Laws Relating to Arms and Ammunition

Preamble: Whereas, it is desirable to consolidate and amend the prevailing Nepal laws relating to arms and ammunition for the purpose of maintaining the security, peace and order of Nepal,

Therefore, His Majesty King Mahendra Bir Bikram Shah Deva has enacted this Act in accordance with Article 93 of the Constitution of Nepal. 1. Short Title, Extent and Commencement: (1) This Act may be called "The Arms and Ammunition Act, 2019".

(2) This Act shall extend to the whole of Nepal removed by the Republic Strengthening and Some Nepal Laws Amendment Act, 2066. Provided that nothing in this Act shall apply to the making, repairing, converting from one form to another, selling, offering for sale, carrying, possessing in one's person or control, exporting from Nepal removed by the Republic Strengthening and Some Nepal Laws Amendment Act, 2066. to abroad, importing from abroad into Nepal removed by the Republic Strengthening and Some Nepal Laws Amendment Act, 2066. or bringing or taking from one district to another district within Nepal removed by the Republic Strengthening and Some Nepal Laws Amendment Act, 2066. of arms and ammunition by order of the Government of Nepal or by order given by a government employee in the course of performing his duty in that capacity.

(3) This Act shall come into force on such date as the Government of Nepal may, by notification published in the Nepal Gazette, appoint. 2.
Arms and Ammunition Act, 1962

2. Definitions: Unless the subject or context otherwise requires, in this Act,-

(a) amended by Some Nepal Laws Amendment, Consolidation, Adjustment and Repeal Act, 2074. "Arms" means cannon, mortar, armored vehicle, machine gun, rifle, gun, pistol, revolver or other instruments of similar nature operated with or without the use of ammunition, and the said term shall also include machines, equipment and spare parts for making arms.

(b) amended by Some Nepal Laws Amendment, Consolidation, Adjustment and Repeal Act, 2074. "Machine Gun" means Bren gun, Lewis gun, Sten gun, Machine, Carbine, Tom's Machine Carbine, G.M.G., L.M.G., Short Machine Gun or automatic arms of similar nature, and the said term shall also include machines, equipment and spare parts for making machine guns.

(c) amended by Some Nepal Laws Amendment, Consolidation, Adjustment and Repeal Act, 2074. "Ammunition" includes gunpowder, caps, bullets, pellets, detonators, cartridges, fuses or other substances of similar nature used in arms.

(d) removed by Some Nepal Laws Amendment, Consolidation, Adjustment and Repeal Act, 2074.

(e) removed by the First Amendment.

(f) "License" means a license obtained under this Act in relation to arms and ammunition, and "Licensee" means a person obtaining such a license.

(g) "Prescribed" or "As prescribed" means prescribed or as prescribed in the rules or orders made under this Act. 3. License Required: Any person desiring to do any of the following acts shall obtain a license under this Act:-

(a) To make or repair arms or ammunition,
(b) To export or import arms or ammunition,
(c) To keep or carry arms or ammunition. 3A. Approval Required: added by Some Nepal Laws Amendment, Consolidation, Adjustment and Repeal Act, 2074. (1) No person shall sell or transfer personal-use arms or ammunition in their possession to another person, except in circumstances prohibited by prevailing law, without obtaining approval from the relevant District Administration Office by specifying the name, surname, address and citizenship number of the person purchasing or receiving them.

(2) A person acting contrary to sub-section (1) shall be liable to imprisonment for up to two years and a fine of up to twenty thousand rupees. 4.
Arms and Ammunition Act, 1962

4. Prohibition on Bringing or Taking: (1) No person shall bring cannon or machine guns from abroad into Nepal removed by the Republic Strengthening and Some Nepal Laws Amendment Act, 2066., take them from Nepal removed by the Republic Strengthening and Some Nepal Laws Amendment Act, 2066. to abroad, or bring or take them from one district to another within Nepal removed by the Republic Strengthening and Some Nepal Laws Amendment Act, 2066..

(2) Without obtaining a license or without adhering to the conditions specified in the license, no person shall bring arms or ammunition from abroad into Nepal removed by the Republic Strengthening and Some Nepal Laws Amendment Act, 2066., take them from Nepal removed by the Republic Strengthening and Some Nepal Laws Amendment Act, 2066. to abroad, or bring or take them from one district to another within Nepal removed by the Republic Strengthening and Some Nepal Laws Amendment Act, 2066.. 5. Prohibition on Carrying Arms Without License: (1) No person shall carry arms without obtaining a license or without adhering to the terms and conditions specified in the license.

(2) amended by Some Nepal Laws Amendment, Consolidation, Adjustment and Repeal Act, 2074. If a person committing an offense contrary to sub-section (1) needs to be arrested, an application shall be submitted to the relevant adjudicating officer seeking permission for arrest, along with the reason for such arrest and details identifying such person.

(3) added by Some Nepal Laws Amendment, Consolidation, Adjustment and Repeal Act, 2074. If the reason for arrest appears reasonable from the application submitted pursuant to sub-section (2), the adjudicating officer may grant permission to issue an arrest warrant.

(4) added by Some Nepal Laws Amendment, Consolidation, Adjustment and Repeal Act, 2074. A person for whom an arrest warrant has been issued pursuant to sub-section (3) shall be arrested by the Chief District Officer or a person deputed by him or the police and produced before the adjudicating officer within twenty-four hours, excluding travel time.

(5) added by Some Nepal Laws Amendment, Consolidation, Adjustment and Repeal Act, 2074. Notwithstanding anything written in sub-section (2), if a person carrying arms without a license or against this Act is not arrested immediately, or if there is reasonable cause to believe that such person may flee, escape or destroy evidence or proof, such person may be immediately arrested anywhere by issuing an urgent arrest warrant, the arms in their possession shall be seized, and they shall be produced along with the arrested person before the adjudicating officer for approval. 5A.
Arms and Ammunition Act, 1962

5A. Prohibition on Carrying Arms During Election Period: added by Some Nepal Acts (Amendment) Act, 2043. (1) Notwithstanding anything written elsewhere in this Act, amended by the Republic Strengthening and Some Nepal Laws (Amendment) Act, 2066. from the date of filing of candidacy for an election conducted by the Election Commission pursuant to prevailing law until seven days after the declaration of election results, no person, other than government employees responsible for security, shall carry even licensed arms within the election constituency.

(2) If any person carries arms contrary to sub-section (1), such person shall be treated as carrying arms without a license and shall be proceeded against under Section 5. 6. Search and Arrest of Persons Suspected of Carrying Arms, Ammunition: (1) If there is suspicion that a person is exporting, importing, or transporting arms or ammunition from one district to another amended by Some Nepal Laws Amendment, Consolidation, Adjustment and Repeal Act, 2074. without a license or, even if licensed, for any unlawful purpose, a police officer of the rank of Assistant Inspector or above may stop and search the person, vehicle, package, load, porters and boxes used for transportation, and if such items are found, arrest such person without a warrant and seize such arms or ammunition.

(2) The person arrested and the arms or ammunition seized under this section shall be produced amended by Some Nepal Acts Amendment Act, 2072. before the adjudicating officer within twenty-four hours, excluding travel time. 7. Office or Post for Conducting Searches: The Government of Nepal may, if deemed necessary, establish search posts for arms or ammunition at the border between the territory of Nepal and foreign territory, and a person authorized by the Government of Nepal may stop vehicles, porters, or animals carrying loads at such places and search the boxes and packages used for transportation. 8. Prohibition on Keeping Arms, Ammunition at Certain Places: The Government of Nepal may, by notification published in the Nepal Gazette, prohibit any person from keeping any specified type of arms or ammunition at a designated place. 9.
Arms and Ammunition Act, 1962

8. Prohibition on Keeping Arms, Ammunition at Certain Places: The Government of Nepal may, by notification published in the Nepal Gazette, prohibit any person from keeping any specified type of arms or ammunition at a designated place. 9. Surrender of Arms and Ammunition to Police Station: (1) If the license period of any person keeping arms and ammunition expires, or if the license is cancelled, or if keeping such arms or ammunition becomes unlawful due to notification published under Section 8 or any other reason, such arms or ammunition shall be immediately surrendered to the local police office, and the police office shall accept them and proceed according to prevailing law.

(2) After surrendering arms or ammunition pursuant to sub-section (1), the person surrendering them may, even before the expiry of the period prescribed in the rules made under this Act, again obtain the following rights:-

(a) If it becomes lawful to keep the surrendered arms or ammunition in one's possession, to get such arms or ammunition back,
(b) To sell or cause to sell the surrendered arms or ammunition to a person lawfully entitled to keep them, and to take the profit from such sale. Provided that, removed by Some Nepal Laws Amendment, Consolidation, Adjustment and Repeal Act, 2074. nothing in this sub-section shall be deemed to grant the right to recover or sell any confiscated arms or ammunition.

(3) Arms or ammunition collected and not returned pursuant to sub-section (2) within the prescribed period shall become the property of the Government of Nepal.

(4) Without prejudice to the generality of the foregoing sections, the Government of Nepal may make rules on the following matters:-

(a) In what circumstances and conditions a licensee must surrender arms or ammunition, and
(b) After the expiry of what period arms or ammunition shall be confiscated under sub-section (3). 10. Manner of Obtaining or Renewing License: (1) Any person desiring to obtain a license under this Act shall submit an application to the Chief District Officer in the prescribed form and with the prescribed fee.

(2) After an application is filed under sub-section (1), the Chief District Officer shall conduct necessary inquiries as prescribed, and if upon inquiry it appears reasonable to grant a license permitting the acts stated in the application, he may issue a license in the prescribed form to the applicant, subject to prescribed terms and conditions.

(3) The validity period of each license issued under sub-section (2), the manner of renewing it, the place, and the fee for such renewal shall be as prescribed. 11.
Arms and Ammunition Act, 1962

11. Power to Cancel or Suspend License: (1) If deemed necessary for public peace and security, the Chief District Officer may, by an order recording reasons, cancel or suspend all or some licenses in all places within his jurisdiction or in any part thereof.

(2) If any licensee is found guilty under this Act or the rules made under this Act, the Chief District Officer may cancel or suspend his license.

(3) The Government of Nepal may, by notification published in the Nepal Gazette, cancel or suspend all or some licenses throughout Nepal removed by the Republic Strengthening and Some Nepal Laws Amendment Act, 2066. or in any part thereof. 12. Power of Chief District Officer to Conduct Search, Seize: If a Chief District Officer has credible suspicion that any person residing within his jurisdiction is in possession of any arms or ammunition without a license or for an unlawful purpose, or if the Chief District Officer believes that allowing such person to keep the arms or ammunition would not be appropriate for public peace, he may, by an order recording reasons, and based on such order, search or cause to search the house, land or other suspected place of such person, and seize any arms or ammunition, whether licensed or not. While conducting or causing to conduct such search, the Chief District Officer must do so or cause to do so only in the presence of an employee from another office as a witness. 13. Government of Nepal's Power to Seize and Detain: Even if a person has obtained a license to keep arms or ammunition, the Government of Nepal may, if deemed necessary for public safety, order at any time to seize and detain the arms or ammunition in such person's possession. 14. Government of Nepal's Power to Exempt: The Government of Nepal may, from time to time, by notification published in the Nepal Gazette, direct that all or any provisions of this Act shall not apply, or shall apply with modifications specified in the said notification, in relation to any person or persons, or in any specific area, or in relation to any specific type of arms or ammunition. 15. Power to Require Inventory of Arms, Ammunition: The Government of Nepal may, from time to time, by notification, direct any person keeping arms or ammunition at any place specified in the said notification within Nepal removed by the Republic Strengthening and Some Nepal Laws Amendment Act, 2066. to furnish an inventory thereof to the prescribed authority.