The Securities Exchange Board of Nepal (SEBON) has added Sanima Equity Fund II to its preliminary review list of mutual fund schemes. This closed-end mutual fund is being introduced by Sanima Capital Limited (fund manager) and Sanima Bank Limited (fund sponsor). Below are the key details of the proposed fund:
1. Fund Overview
- Fund Type: Closed-end mutual fund.
- Fund Size: Rs. 1 Arba (divided into 10 crore units).
- Par Value: Rs. 10 per unit.
- Application Date: Submitted to SEBON on Magh 4, 2081 (January 18, 2025).
2. Key Stakeholders
- Fund Manager: Sanima Capital Limited.
- Fund Sponsor: Sanima Bank Limited.
3. What is a Closed-End Mutual Fund?
- Definition: A closed-end mutual fund issues a fixed number of units during its initial offering, which are then traded on the stock exchange.
- Liquidity: Units can be bought and sold in the secondary market, but the fund does not issue or redeem units after the initial offering.
- Investment Focus: Typically invests in equities, bonds, or other securities to generate returns for investors.
4. Next Steps
- SEBON Review: The fund is currently under preliminary review by SEBON.
- Approval Process: Once approved, the fund will be launched, and units will be offered to the public.
- Listing: After the initial offering, the fund’s units will be listed on the Nepal Stock Exchange (NEPSE) for secondary market trading.
What This Means for Investors
- New Investment Opportunity: Sanima Equity Fund II will provide investors with a chance to diversify their portfolios through a professionally managed equity fund.
- Closed-End Structure: Investors can trade units on NEPSE after the initial offering, providing liquidity.
- Trusted Management: With Sanima Capital Limited and Sanima Bank Limited behind the fund, investors can expect reliable management and oversight.
Conclusion
Sanima Equity Fund II is a promising new closed-end mutual fund currently under review by SEBON. With a fund size of Rs. 1 Arba and a par value of Rs. 10 per unit, the fund aims to offer investors an opportunity to participate in equity markets through a structured and professionally managed scheme. Stay tuned for further updates on the fund’s approval and launch timeline.
