CIT to collect funds from Nepalis residing abroad

- POST REPORT, Kathmandu
CIT to collect funds from Nepalis residing abroad

Mar 16, 2015-

The Citizen Investment Trust (CIT) has moved to issue a financial instrument to collect resources from Nepalis residing abroad which will be invested in the productive sector, the government institution said Monday.

CIT Executive Director Ram Krishna Pokharel said they were preparing to launch the instrument named Nagarik Ekanka Yojana targeting migrant Nepalis. “We aim to invest the resources generated under the scheme in national pride projects. The move is also aimed at diversifying the CIT’s investment portfolio,” he added.

According to him, the CIT has formulated the working guideline and has been carrying out a preliminary study for the purpose.

Although Nepal Rastra Bank has been issuing foreign employment savings bonds targeting migrant workers for the last few years, the scheme has not been able to attract much interest. Subscription has fallen short of the target each time the bonds were issued.

Apart from investing in the productive sectors, the CIT has also been planning to work as a market maker in the capital market. “We have started doing homework on whether to operate a separate agency by establishing a subsidiary or operate through the existing organisational set up,” said Pokharel.

Pokharel said the organisation had targeted investing in low risk sectors that could yield a high rate of return.

According to him, the organisation has also started developing an integrated application software to adopt a one-door policy to provide multiple services to customers through a single channel. Recently, the CIT has extended its services through branch offices in Pokhara and Biratnagar.

The CIT has been serving 460,000 people across the country. It has a paid-up capital of Rs450 million. As of the first half of the current fiscal year, the CIT held funds totalling Rs58 billion and had invested Rs54 billion.

Shrestha’s assets frozen

The Citizen Investment Trust (CIT) said it had frozen the assets of Yogendra Prasad Shrestha, former chairman of Nepal Share Market and Finance, to protect the interest of its 460,000 customers even as the Nepal Stock Exchange (Nepse) barred CIT shares from being traded from Wednesday terming the action as been against the norms of share transactions. The CIT has declined to verify Shrestha’s signature when he tried to sell 600 shares in the trust.

Published: 17-03-2015 09:35

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