One
more reason to advocate for Alternative Investment Act (Venture
Capital Act) ?
This Morning I read a
news- " Management of
Hydroelectricity Investment and Development Company (HIDC) has bogged down in
confusion as the government has not decided which of its agencies should
oversee it—the Ministry of Energy or Nepal Rastra Bank (NRB.............The
government established HIDC to fund large hydel projects and accelerate hydropower
development in the country as lack of financial resources has been one of the
major stumbling blocks. Though the HIDC has planned to get the go-ahead for its
banking activity, its regulatory body has not been
determined.................... The
NRB legal department had advised against the central bank regulating HIDC. “As
NRB’s regulatory job is to protect the interest of depositors, it is not
necessary for it to regulate a company that does not collect public deposits,”
This confusion could have
been resolved if we had a Venture Capital Act in
the country
My Suggestions
- Country needs a private equity /venture fund act
- Strengthen SEBON and make it the regulator for Alternative investment (VC, Private
equity fund, debt fund, private equity in public enterprise)
- Quasi state owned company like- Hydroelectricity
Investment and Development Company could be registered and
run as a private equity fund
management company .The Ministry of Energy can
be a General Partner or a LP
- Categorize the type of fund
and priority sector
- Provide incentives to fund that are working
in high impact sector
- Make it easy for Foreign Venture Fund to invest in
Nepal Enterprise – SEBON should be
the regulatory body to give approvals not Department of Industries.
- I am against commercial banks opening VC fund
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