The Citizen Investment Trust (CIT) was established on March 18, 1991 (2047 Chaitra 4 B.S.) under the Citizen Investment Trust Act, 1990 (2047 B.S.). Its primary objectives are to encourage the general public to save, increase investment opportunities for economic development, manage retirement and social security programs and bring dynamism to the capital market.
History and Expansion
- Operations: Formal operations commenced on January 15, 1992 (2048 Magh 1 B.S.).
- Infrastructure: Initially located near the JCI Building in Thapathali, the office moved to it's own purchased building in New Baneshwor in 2010. Currently, it operates from its own service-oriented, well-equipped central office located east of the International Convention Center (ICC) in New Baneshwor.
- Presence: To ensure nationwide service, CIT has established branch offices in Biratnagar, Janakpur, Pokhara, Butwal, Surkhet and Dhangadhi, covering all provinces of Nepal.
- Capital Growth: Starting with a paid-up capital of NPR 24 million, it has now grown to NPR 6.80 billion.
Duties, Responsibilities, and Powers
Under the CIT Act, 2047, the Trust performs the following core functions:
A. Savings-Related Functions
- Operating social security programs like contribution-based pensions and health insurance, either independently or in collaboration with other institutions.
- Managing contribution-based Term Life Insurance funds for civil servants, army and police personnel, teachers and employees of other organized institutions.
- Managing gratuity funds and pension programs as prescribed.
- Operating voluntary or mandatory retirement funds and investor account schemes.
B. Securities-Related Functions
- Investing and reinvesting in various securities and holding ownership.
- Purchasing securities in primary or secondary markets and acting as a wholesaler.
- Providing loans and advances to participants of retirement funds and investor account schemes to purchase securities.
- Encouraging institutions to issue securities and providing services as an Issue and Sales Manager.
- Establishing subsidiary companies or institutions for capital market development.
- Underwriting shares independently or with other merchant banks.
- Investing in foreign securities in collaboration with domestic or foreign entities (with approval from Nepal Rastra Bank, the central bank of Nepal).
- Providing capital market consultancy services.
C. Investment and Loan-Related Functions
- Investing in cash certificates or fixed deposits of commercial banks.
- Providing loans to organized institutions against the guarantee of 'A' class commercial banks.
- Investing in the shares of commercial banks, financial institutions and insurance companies.
- Investing in infrastructure projects under federal, provincial or local government partnerships (PPP model).
- Investing in government-issued bonds.
- Investing Citizen Unit Scheme funds in foreign securities (with NRB approval).
- Investing in hydropower production, transmission and infrastructure under government ownership or control.
- Investing in debentures issued by organized institutions.
- Providing loans to legally established organized institutions.
- Operating various loan schemes for participating members.
- Providing joint loans through co-financing with commercial banks or financial institutions.
- Providing bridge financing facilities or advances to organized institutions.
D. Other Functions
- Acting as a Trustee for debentures issued by organized institutions.
- Acting as a Custodian (holding securities, managing purchases/sales, transfers and collecting interest or dividends on behalf of domestic or foreign investors).
- Providing expert consultancy services on financial management, savings and alternative investment opportunities.
Key Programs and Schemes
To encourage savings and facilitate post-retirement life, CIT operates the following major schemes:
- Employee Savings Growth Retirement Fund (ESGRF)
- Citizen Unit Scheme
- Gratuity and Pension Fund
- Investor Retirement Fund Scheme
- Citizen Pension Scheme (A broad scheme for Nepalese citizens not covered by other savings programs).
- Term Life Insurance Fund for NARC employees.
- Term Life Insurance Fund for Civil Servants
(Including Civil Servants, Teachers, Nepal Army, Nepal Police, Armed Police Force, National Investigation Department and Local Level employees).
For more details on these Schemes & Programs, please visit the "Schemes & Programs" menu of this from website.
