Foreign Exchange (Regulation) Act, 1962

2. Definitions: In this Act, unless the subject or context otherwise requires,-

(a) Amended by the Second Amendment. "Currency" means all kinds of currency notes, postal orders, postal notes, money orders, cheques, drafts, travelers cheques, letters of credit, bills of exchange, promissory notes, credit cards and also includes such other monetary instruments of similar nature as the Bank may specify by publishing and circulating a public notice.

(a1) Added by the Second Amendment. "Currency Note" means a bank note which is in circulation as cash, and also includes coins.

(b) Amended by the Second Amendment. "Foreign Currency" means any currency other than Nepali currency, and also includes Special Drawing Rights from the International Monetary Fund, Asian Currency Unit, European Currency Unit, and such other instruments as the Bank may specify by publishing and circulating a public notice.

(c) Amended by the Second Amendment. "Nepali Currency" means currency denominated in Nepalese Rupees.

(c1) Added by the Second Amendment. "Convertible Foreign Currency" means such foreign currency as the Bank may specify as convertible foreign currency by publishing and circulating a public notice.

(d) Amended by the Second Amendment. "Foreign Exchange" means foreign currency, all kinds of deposits, loans, balances, foreign securities and cheques, drafts, travelers cheques, electronic fund transfers, credit cards, letters of credit, bills of exchange, promissory notes in international use which are payable or receivable in foreign currency, and also includes any other monetary instruments as the Bank may specify by publishing and circulating a public notice.

(d1) Added by the Second Amendment. "Foreign Exchange Transaction" means the act of purchasing or selling foreign exchange, taking or giving loans, or receiving or giving foreign exchange in any other manner, and also includes the act of the Bank granting approval for foreign exchange conversion.

(d2) Added by the Second Amendment. "License" means a license obtained from the Bank pursuant to Section 3 by any person, firm, company or institution for carrying out foreign exchange transactions.

(e) Added by the Second Amendment. "Licensee" means a person, firm, company or institution that has obtained a license from the Bank pursuant to Section 3 to carry out foreign exchange transactions.

(f) Added by the Second Amendment. "Securities" means shares, stocks, bonds, debentures, debenture stocks issued by any organized institution, or certificates relating to unit savings programs or group savings programs issued by an organized institution pursuant to prevailing law, or transferable deposit certificates, and also includes such securities or securities deposit receipts, rights and interests relating to securities as the Government of Nepal may specify by publishing a notice in the Nepal Gazette.

(g) Amended by the Second Amendment. "Foreign Securities" means securities issued or floated from any country other than Nepal Deleted by the Republic Strengthening and Some Nepal Laws Amendment Act, 2066..

(g1) Added by the Second Amendment. "Foreign Investment" means the following types of investment made by a foreign investor in any firm, company or institution:-

(1) Investment in shares,

(2) Investment in deposits,

(3) Reinvestment of income derived from investment pursuant to sub-clauses (1) and (2),

(4) Investment in the form of loans or loan facilities.

(g2) Added by the Second Amendment. "Technology Transfer" means the transfer of technology made by entering into an agreement between any firm, company or institution and a foreign investor regarding the following matters:-

(1) To utilize any rights, specialties, formulas, processes, patents or technical knowledge relating to any technology of foreign origin,

(2) To utilize a trademark of foreign ownership,

(3) To provide foreign technical consultant, management and marketing services.

(g3) Added by the Second Amendment. "Foreign Investor" means any foreign person, firm, company or institution making a foreign investment or technology transfer, and also includes a foreign government or international institution.

(g4) Added by the Some Nepal Acts Relating to Economic and Business Environment Improvement and Investment Enhancement Amendment Act, 2081. "Investment Abroad" means the following investment made by a company or enterprise established in Nepal in a foreign country:-

(1) Investment in shares or purchase of shares of a limited liability partnership, firm, investment fund, company or an entity of similar nature established or registered abroad, which is not listed on the securities market of that foreign country,

(2) Investment in shares or purchase of shares of up to twenty percent of the paid-up capital of a limited liability partnership, firm, investment fund, company or an entity of similar nature established or registered abroad, which is listed on the securities market of that foreign country;

Provided that such limit shall not apply when a Nepali citizen invests funds earned during the period of stay abroad.

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

(4) Amount deposited in a bank account abroad by a company or enterprise established in Nepal, or

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