The Nepal Securities Board (SEBON) has announced its plan to implement the Qualified Foreign Institutional Investor (QFII) framework, opening up the Nepali capital market to foreign institutional investors.
SEBON, the Nepal Securities Board, recently made public its capital market policy for the fiscal year 2083/84. As part of this, the board has unveiled the ‘Qualified Foreign Institutional Investor (QFII)’ framework. This initiative aims to attract large global institutional investors for portfolio investments in Nepal’s securities market.
Key Provisions of the QFII Framework
According to the new policy, SEBON will give preference to long-term institutional investors when bringing foreign capital into the market. This includes entities such as Sovereign Wealth Funds, Pension Funds, international asset management companies, and Mutual Funds.
The board stated that foreign institutional investors will be allowed into Nepal’s secondary market in a phased manner, based on a risk assessment. This approach expected to boost market depth and liquidity.
To ensure a smooth entry process for foreign investors, the QFII Framework will be developed in close coordination with the Nepal Government and Nepal Rastra Bank. The policy highlights that the entry, registration, and investment procedures for foreign investors will be made clear, transparent, and predictable.
Additionally, SEBON plans to make the process for repatriating profits and returns, managing foreign exchange, and handling tax arrangements more investor-friendly. This will create a better environment for international investors.
The policy also prioritize the development of necessary infrastructure for foreign investment. This involves studying international custodian services and cross-border collaboration, and implementing the required arrangements.
To further promote Nepal’s capital market among international investors, SEBON has also put forward plans to conduct an ‘International Investor Outreach Program’ and various road-shows.
AI Disclaimer: This article was originally published on https://bajarkochirfar.com. It has been translated with the help of AI. For the best understanding and accurate facts, we recommend reading the original Nepali version.
