Business

NMB Bank applies for mutual fund licence

NMB Bank Limited on Monday applied to the Securities Board of Nepal (Sebon) for the permission to run mutual fund.

With this, the number of banks and financial instructions (BFIs) applying for mutual fund license has reached two. Earlier, Siddhartha Bank had applied on June 9.
In a press release, NMB said it has completed all preparations related to management and infrastructure. It will launch schemes in coordination with its subsidiary company NMB Mutual Fund, which works as its fund manager, after its registration.
According to the bank, the capital market would take a positive direction with the operation of mutual funds, as the funds will introduce small investors to the market. Mutual funds will operate as institutional investors.
Nabil will run the mutual fund through its subsidiary Nabil Investment Banking. It has a paid-up capital of Rs 100.5 million. The Mutual Fund regulation has provisioned that BFIs having Rs 1 billion paid-up capital cal only operate mutual fund. The subsidiary company working as fund manger should have a paid-up capital of Rs 100 million.Establishment of mutual funds is expected to help stabilise the capital market as it is heavily distorted in the absence of big investors.
source:ekantipur