Nabil Bank applies to operate Mutual Fund
Thu, Jul 14, 2011 12:00 AM on Others,
KATHMANDU:
Nabil Investment Banking - Nabil Bank’s merchant banking arm — has applied for license to operate Mutual Fund to the capital market regulator Securities Board of Nepal (Sebon).
This is the third commercial bank subsidiary to apply for the Mutual Fund after the Mutual Fund Regulation 2067 was endorsed last August.
Two commercial banks have already applied for the license to operate Mutual Fund to Securities Board of Nepal.
Siddhartha Bank Ltd had applied to obtain the license for its subsidiary asset management company — Siddhartha Asset Management Company — to operate mutual funds while NMB Bank’s NMB capital has also filed for the license to manage and operate the Mutual Fund.
Nabil Investment said that it has already prepared the necessary infrastructure required to start a Mutual Fund. “We can start Mutual Fund once we get the approval from Sebon,” it said, adding that the bank will work as the sponsor while its merchant banking subsidiary will act as the asset management company.
The regulations require the sponsor of the Mutual Fund with a minimum paid up capital of Rs 1 billion and should be in existence for last five years with earning net profit from last three years among others, making the commercial banks the most suitable entity to start the business.
The Mutual Funds are supposed to bring the much needed balance in the share market as they buy bulk stocks from the stock market creating demand and when the stock market is getting inflated unnaturally, funds release the shares in the market restoring stability.
The Mutual Funds pool in the money from small investors by selling units of these professionally managed Funds.
These are managed professionally by experts so that even layman investor who knows nothing about finance can also earn substantial return from stock by purchasing unit of mutual funds.
Source: THT
Nabil Investment Banking - Nabil Bank’s merchant banking arm — has applied for license to operate Mutual Fund to the capital market regulator Securities Board of Nepal (Sebon).
This is the third commercial bank subsidiary to apply for the Mutual Fund after the Mutual Fund Regulation 2067 was endorsed last August.
Two commercial banks have already applied for the license to operate Mutual Fund to Securities Board of Nepal.
Siddhartha Bank Ltd had applied to obtain the license for its subsidiary asset management company — Siddhartha Asset Management Company — to operate mutual funds while NMB Bank’s NMB capital has also filed for the license to manage and operate the Mutual Fund.
Nabil Investment said that it has already prepared the necessary infrastructure required to start a Mutual Fund. “We can start Mutual Fund once we get the approval from Sebon,” it said, adding that the bank will work as the sponsor while its merchant banking subsidiary will act as the asset management company.
The regulations require the sponsor of the Mutual Fund with a minimum paid up capital of Rs 1 billion and should be in existence for last five years with earning net profit from last three years among others, making the commercial banks the most suitable entity to start the business.
The Mutual Funds are supposed to bring the much needed balance in the share market as they buy bulk stocks from the stock market creating demand and when the stock market is getting inflated unnaturally, funds release the shares in the market restoring stability.
The Mutual Funds pool in the money from small investors by selling units of these professionally managed Funds.
These are managed professionally by experts so that even layman investor who knows nothing about finance can also earn substantial return from stock by purchasing unit of mutual funds.
Source: THT
