The Nepal Securities Board (SEBON) has declared its plan to remove the lock-in period for mutual funds, aiming to expand the scope of collective investment schemes.
The Nepal Securities Board (SEBON) has announce its capital market policy for fiscal year 2083/84. As part of this new policy, SEBON plans to expand the reach of Collective Investment Schemes, also known as Mutual Funds. A major decision is the removal of the ‘lock-in’ period for these funds.
According to the policy document, the lock-in period for collective investment schemes will be remove. This step is taken to help maintain a good balance between the demand and supply of securities once they are listed and start trading in the market.
SEBON also shared its investment priorities. The board will focus on closed-end and open-end schemes. It will also give importance to index-based funds, which aim for average market returns, Exchange Traded Funds (ETF), Debt Funds, Money Market Funds, and funds focused on specific sectors.
Additionally, the policy mentions that SEBON will coordinate with relevant bodies. This coordination is to help pension and retirement funds diversify their investments and to encourage them to participate in various collective investment schemes offered by mutual funds.
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.
