March 12, 2019 | Investopaper
Securities Board of Nepal (SEBON) released “Specialized Investment Fund Regulation 2075” on Falgun 27, 2075. The regulation came into effect in order to encourage alternative investment funds such as private equity, venture capital, and hedge funds. As per the major provisions in the newly introduced regulation, SEBON has primarily made way for establishing Equity fund, Venture Capitals and Hedge Funds in the Nepalese market. The regulation became effective from Falgun 22,2075.
The major highlights of this regulation include:
- It will be applicable for the major three investment funds: Private equity, venture capital, and hedge fund
- The minimum capital requirement to operate as fund management is Rs. 2 crores with the fulfillment of other necessary requirements and permission from the board.
- The minimum capital of Rs. 15 crores will be required for the firms to operate as private equity, venture capital or hedge fund. Also, the fund management firm should have at least 2% of the fund size. Likewise, the unitholders of the fund should not be more than 200, the fund should be closed-ended, the fund should distribute cash dividend and the unitholders should purchase minimum units worth Rs. 50 lakh.
To see the complete guidelines, click on the link below: