Kathmandu: Securities Board of Nepal (SEBON) has granted preliminary approval to two companies to operate as Private Equity and Venture Capital Companies (PEVCCs).
Out of 33 companies that applied for PEVCC licenses, SEBON approved Maverick Kautilya Venture and Mogha Infrablox Private Limited on3 July.
Assistant Spokesperson of SEBON, Tolakant Neupane, confirmed that the board has given in-principle approval to these two companies to operate as PEVCCs. The approval was granted under the Specialized Investment Fund Regulations, 2018, which outline the licensing process for fund managers.
Among the 33 applicants, prominent names include Emerging Ventures Limited, Himalayan Capital, Everest V Fund, Sunlife Capital, Citizens Capital, Reliable Investment and Merchant Capital, Team Partners Fund, Asian Capital, Power Fund Limited, and Elevation Partners Limited. Other companies seeking licenses include Muktinath Capital, Jyoti Capital, Machhapuchchhre Capital, Imperial Innovation Fund, Samriddhi Equity, Smart Investment, Nepal Life Capital, Apex Funds, Peak Equity Venture, Investlist Capital, Trishakti Equity Fund Limited, and Blue Chip Venture Capital.
Additionally, X Equity Limited, Himalayan Venture Capital, Multiply Capital Management, DravyMax Venture, Sarathi Equity Fund, Trust Equity Fund, Asha Equity Ventures, Kumari Capital, and Jerodha Equity Limited are also in the race for PEVCC licenses.
The concept of PEVCC funds in Nepal began in 2012, but initially, there was limited interest from both government and private sectors. However, private sector initiatives gradually gained momentum, with fund managers like Dolma and Business Oxygen becoming active from 2014/15 onwards, primarily handling foreign investment-based PEVCC funds.
The introduction of the Specialized Investment Fund Regulations in 2018 was a significant milestone, with Business Oxygen playing a key role in its formulation. Following the regulations, local fund managers began operating with the goal of mobilizing domestic resources.
Private investment firms such as Team Ventures, Alpha Capital, and Two North Associates have also emerged as alternative investment sources in Nepal.
From a policy perspective, SEBON’s issuance of the Specialized Investment Fund Regulations on 6 March 2019 opened doors for specialized funds like Private Equity Funds, Venture Capital Funds, and Hedge Funds.
These regulations were designed to provide new investment avenues for businesses involving cutting-edge knowledge, skills, products, services, technology, or intellectual property.
After the regulations were implemented, 17 companies applied for fund manager licenses, but only 12 were approved. SEBON granted licenses to Global Equity Fund Limited, Avsar Equity Limited, NIC Asia Capital, Laxmi Capital Markets, NIMBS Capital, NMB Capital, Prabhu Capital, and Nabil Investment Banking.
Additionally, Adhyanta Fund Management Limited, Alpha Plus Venture Limited, National Fund Management Limited, and Reliable Venture Capital Limited also received fund management licenses.
The government has played a supportive role in promoting PEVCCs, particularly through the fiscal year 2018/19 budget, which emphasized introducing private equity, venture capital, and hedge funds into the capital market.
PEVCCs are expected to boost domestic production, create employment opportunities, and contribute to national revenue, making their expansion crucial for Nepal’s economic growth.
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