Kathmandu, January 27

Finance Minister Yubaraj Khatiwada today informed that the Citizen Investment Trust (CIT) will be issued the licence of market dealer in a bid to expand the capital market and enhance investment in the market.

Addressing the meeting of the Finance Committee of the Parliament today, Khatiwada said that necessary groundwork is being done to allow CIT to start a subsidiary market dealer firm and raise investment in the country’s sole capital market.

“CIT itself is an organisation of capitals. As the market today needs a ‘market maker’, CIT through its subsidiary company can play the role of a market maker,” said Minister Khatiwada, adding that necessary policy framework will soon be drafted to issue market dealer licence to CIT.

Meanwhile, the minister also said that CIT’s paid-up capital of Rs three billion is enough for the trust to start market dealer works. Citing that CIT is not a profit-making entity, Khatiwada said that the firm should focus on secured investment of the resources collected from the public.

On the occasion, he also said that the jurisdiction and working areas of CIT are different compared to the Social Security Fund (SSF) and assured that social security plans between these two firms will not be similar to each other.

Similarly, Revenue Secretary Sishir Kumar Dhungana directed SSF not to introduce any social security schemes that match or overlap those being provided by CIT and Employees Provident Fund (EPF).

Meanwhile, Prakash Rajhaure, an independent stock analyst, had recently stated that a stock dealer is needed when secondary market is undergoing a turbulent time. “For instance, if the market crashes and banks and financial intuitions are unwilling to issue share loans, stock dealer comes into play. However, as the market has already entered a bullish phase, a stock dealer is not necessary at present,” he opined.