The Fund shall have the following powers in relation to
the mobilization of its balance and assets and expansion of the range of social
security:
(A) To make investment in bonds of the Government of Nepal or foreign or
local organization recognized by Government of Nepal,
(B) To make investment in cash certificate fixed deposits of banks
established as per the prevailing law,
(C) The Fund may make investment, against appropriate bank guarantee in
cash certificate fixed deposits of financial institutions established as per
the prevailing law, to which the Fund deems appropriate,
(D) To lend moneys to any industry, enterprise or body corporate, against
the guarantee of the Government of Nepal on such terms and interest as
specified by the Fund,
(E) To make investment in shares of banks and financial institutions;
Provided however that, in so making investment in shares, investment
shall be so made as not to exceed Twenty Five percent of the issued
capital of such a bank or financial institution.
(F) Jointly supplying credits on the basis of co-financing, in such areas as the
Fund considers appropriate, in collaboration with other banks or
financial institutions established under the laws in force in accordance
with the mutual agreement entered into for the division of the collateral
pari passu;
(G) To make investment in debentures issued by such companies or bodies
corporate incorporated pursuant to the laws in force as the Fund
considers appropriate;
Provided however that, in so making investment in debentures,
investment shall be so made as not to exceed Twenty Five percent of the
issued debentures of such companies or bodies corporate.
(H) The Fund may make investment in the area of power generation and
distribution, agriculture development, tourism and construction of larger
infrastructures promoted by Government of Nepal or anybody having
under the ownership or control of Government of Nepal,
(I) The Fund may incorporate or establish company or institute in order to
operate mutual fund by the Fund solely itself or in collaboration with
other institution in involvement of employees and the persons involving
in self-employment,
(J) The Fund may operate mutual fund in involvement of employees and the
persons involving in self-employment,
(K) The Fund may operate housing projects solely by the Fund or in
collaboration with other institutions and directly or by installment sell,
distribute or rent houses and housing plots;
(L) The Fund may make investment solely or in collaboration with other
institutions for the development of educational sectors including
university, teaching hospital, medical college as well as production of
drugs, power generation, tourism, agricultural development by carrying
out feasibility study,
(M) The Fund may sell and distribute houses and housing plots or establish
and operate companies or institutions for the operation of housing
projects;
(N) To construct buildings in the land having under the ownership of the
Fund and rent them;
(O) To lend moneys to any companies or bodies corporate incorporated
pursuant to the laws in force, by specifying terms and interest, against
the guarantee of any banks or financial institutions established under the
laws in force;
(P) To make investment in such areas as the Fund considers appropriate,
against adequate security or guarantee;
(Q) In the event of receiving by the Fund of any assets belonging to any
institution for any outstanding loan lent by the Fund, to operate that
institution solely or in collaboration with any other institution or
establish a new institution for the utilization of the assets;
(R) To establish and operate retirement fund, health insurance, social
security fund by the Fund solely or in collaboration with any other
institution in the prescribed area of social security including retirement,
hearth insurance, etc.
(S) In the event of failure of any individual or institution to repay the loan or
debt within stipulated time limit or to recover the principal and interest
as per the law in case of any investment made by the Fund in any
mortgage or guarantee and to recover the outstanding loan from other
movable or immovable assets having under the ownership of borrower
individual or institution in case of failure to recover such loan by the
deposited amount or mortgage of concerned person;
(T) To provide loan to the employees or the person involving in self-
employment in the terms and conditions as specified by the Board;
(U) To do any acts in the interests of the employees, taking into
consideration of the security of the Fund, by obtaining approval of the
Government of Nepal;
(V) The Fund may conduct social security or welfare related activities for
the promotion of maximum benefit and interest of the employees and the
persons involving in self-employment;
(W) To do all such other acts as may be incidental in the course of doing acts
as required to be done under this Act.