Chapter-7

Chapter-7

Miscellaneous

42. Provision of Staff:

(1) Government of Nepal may appoint an Executive Director to conduct day to day functions of the Trust.
(2) Tenure of Executive Director shall be Five years. Government of Nepal may extend tenure of the Executive Director again for Five years.
(3) Committee may appoint Advisor, Officer and Staffs required to conduct the functions of the Trust smoothly.
(4) Remuneration, facility and other terms of service of Executive Director, Advisor, Officer and Staffs appointed pursuant to Sub- Sections (1) and (2) shall be as prescribed.

43. Technical Sub- Committee:

(1) Committee may, as per the requirement, constitute various technical sub- committees to smoothly conduct the function of Trust, for better management of Citizen Unit Scheme and Investment Account Scheme.
(2) Functions, duties and powers of the Sub- Committees constituted pursuant to Sub Section (1) shall be as prescribed.

43A. Trust may designate Trustee: (1) Trust may designate Committee, Sub- Committee or member of such Committee, Sub -Committee or any Officer staff of Trust to function as a Trustee, upon giving authority to exercise the powers and responsibility conferred on it, in order to manage for investment of, as per the condition of related Scheme, the capital fund accumulated from depositors and investors pursuant to this Act or to discharge obligation as per agreement done with any other corporate body in this regard.
(2) Functions and duties of the Trustee designated by the Trust pursuant to Sub Section (1) shall be as prescribed.

44. Oath to be Taken: Each Director, Executive Director, Advisor, member of Technical Sub- Committee and Officer and Staffs, before resuming their Office, shall take oath as prescribed.

45. Power of the Government of Nepal to withhold Committee:

(1) In case the Committee fails to discharge duties to be performed by it pursuant to this Act, Government of Nepal, by publishing a Notification in Nepal Gazette, may withhold the Committee for a period of One year in maximum.
(2) In case the Committee is withheld pursuant to Sub Section (1), Government of Nepal may designate any person, committee of persons or Institution to perform all the functions and business of the to be performed pursuant to this Act.
(3) All the functions and business performed under this Act and Bye -law made there under by Person, Persons’ Committee or Institution designated to perform the functions and business of Committee pursuant to Sub-section (2) shall be equally valid as if done by the Committee constituted pursuant to this Act.

46. Liaison with Government of Nepal: Trust shall liaise with Government of Nepal through the Ministry of Finance.

47. Annual Report: Trust shall, within the period of Nine months from the end of Fiscal Year, submit Auditor’s report and report relating to the functions and business of the Trust to the Government of Nepal.

48. Government of Nepal may issue Order or Direction: Government of Nepal may, keeping in view the monetary and capital market situation of the country and interest of investors, issue required Order or Direction and it shall be the duty of the Trust to abide by such Order or Direction.

49. Nepal Rastra Bank may issue Order or Direction: Nepal Rastra Bank, with the purpose to increase the effectiveness of the Trust and keeping in view the monetary situation of the Country, may issue required Order or Direction from time to time. It shall be the duty of the Trust to abide by such Order or Direction.

50. Inspection and inquiry:

(1) l Government of Nepal may appoint Inspector to inspect the functions and business of the Trust.
(2) Inspector appointed pursuant to Sub Section (1) may inspect all accounts and documents remained at the Trust.
(3) Inspector appointed under this Section shall submit Inspection Report to the Government of Nepal.

51.  …………….

52. Privilege of the Trust: Trust may prescribe terms and conditions on Savings Fund, Investment Management and other services under Investment, Citizen Unit Scheme and Investment Account Scheme provided by it under this Act, and fix the commission, service fee and charges to be levied there under.

53. Security of Debt Investment of Trust: Notwithstanding anything contained in the prevailing law, in case any corporate body in which the Trust has made investment dissolved, first claim over the asset of such body shall be of the Trust.

54. Secrecy to be Maintained:

(1) Notwithstanding anything contained in the prevailing law, particulars of relationship between Trust and Customers and business or accounts of Trust shall not be provided to others except the concerned.
(2) Notwithstanding anything contained in Sub Section (1), it shall not be deemed to have been violated the secrecy of business or accounts of the Trust if provided to Court in the course of any case or other legal proceedings, to Auditor during audit or to the Inspector appointed for the inspection during inspection.
(3) While inspecting business or accounts of Trust, Court, Auditor or any other shall not violate secrecy of business or accounts of the Trust.

55. Dissolution of Trust may happen: The Trust may be dissolved in the following situation:
(a) In case Nepal Government considers that the Trust is incapable of repaying the amount to be refunded to the Unit holders under Citizen Unit Scheme and investors under Investor Account Scheme, of repaying other debt to be repaid or in performing functions as per this Act.
(b) In case Government of Nepal decides to dissolve the Trust on any reasonable ground.

56. Appointment of Liquidator:

(1) Government of Nepal shall appoint Liquidator in case the Trust is to be dissolved pursuant to Section 55.
(2) The duties and powers of the Liquidator appointed pursuant to Sub- Section (1) shall be as good as the Government Liquidator pursuant to Company Act, 2063
(3) The Liquidator shall receive remuneration or allowance from the Trust as prescribed by the Government of Nepal.

57. Order of Priority of Paying liability: Payment of liability shall be made in the following priority while liquidating the Trust.
(a) Expense incurred during Liquidation,
(b) Remuneration and other residual amount to be received by staff or workers of the Trust,
(c) Amount of Investment Account Scheme, Citizen Unit Scheme and
(d) Debt amount, and
(e) Amount to be repaid to Government of Nepal.

58. Penalty:

1) Anyone, knowingly, if mentions or causes to mention false statement in any particulars or certificate or in any receipt or any other document of collateral provided to the Trust for the purpose of the Trust’s investment or loan or other facility provided by the Trust pursuant to this Act and if the Trust suffers any loss, such person shall be liable to compensate such loss and be fined up to Five Thousand Rupees or be imprisoned not exceeding One year or the both.
(2) In case anyone violates confidentiality pursuant to Section 54, shall be liable to pay a fine up to Three Thousand Rupees or be imprisoned up to Three months or the both.
(3) In case anyone hinders or obstructs the Inspector appointed pursuant to Section 50 while doing his/her functions of inspection or without any appropriate reason does not provide document for inquiry, such person shall be subject to a fine upto Two Thousand Rupees or imprisonment up to Two months or the both.
(4) In case anyone publishes name of the Trust in any prospectus or advertisement without obtaining written approval of the Trust, shall be subject to a fine up to One Thousand Rupees or imprisonment up to One month or the both.

59. Power to make Bye-law: Trust may, subject to this Act, frame the required Bye-laws to manage its internal act and activities upon obtaining approval from the Government of Nepal.