The Royal Monetary Authority (RMA) has approved Bhutan’s first Fund and Assets Management Company, Nubri Capital Private Limited (NCPL) fully owned and operated by Bhutanese nationals.

The NCPL will mostly deal in investment management by provide professional management of various securities like shares, bonds and assets mostly real estate in order to meet specified investment goals for the benefit of the investors.

According to the Chief Executive Officer and promoter of the company, Sonam Tobgay, the company looks forward to providing the highest quality and service in asset and investment management.

He said that anyone can be the investors like insurance companies, pension funds, corporation, charities, and educational establishments, private investors which can be done both directly by means of investment contracts and more commonly by collective investment schemes like mutual funds or exchange-traded funds.

The NCPL will mainly focus on raising capital and investing it and advising clients.

Under the raise and invest capital the company will assist public and private corporations in raising funds in the primary capital markets- both equity and debt- and the company will also serve as intermediaries between corporations and governments that want to attract investments capital and investors.

The NCPL will also assist in corporate reorganizations and advising on strategic matters such as mergers and acquisitions, divestitures, corporate defense strategies, joint venture and privatizations.

According to Sonam Tobgay, fund and assets management is all about raising funds both equity and debt. It also involves providing financial services for clients, such as trading or fixed income, foreign exchange and equity securities unlike banks.

“We are not here to compete with banks but we hope to compliment the banks and financial institutions,” he said. He said that it will help to enhance the financial market in the country.

According to the regulations on Fund Management Company in Bhutan, 2011, a fund management company will be allowed as a private limited entity with a minimum of four shareholders and must be fully owned and managed by Bhutanese nationals.

An investment fund management company will pool money from various investors and invest it in securities like stocks, bonds, equities and other securities. The investment will guarantee fair return because the funds will be managed by financial experts. The income received will be shared among the investors.

The promoters must have a minimum paid up capital of Nu 20mn which must be increased to Nu 50mn in five years. The company must maintain cash or its equivalent of not less than 10% of the net worth of the company at all times.

The company can invest in any or all four types of funds: open-ended funds, close-ended funds, private funds, and other funds.

The regulations mandate that the fund manager and the depository must not be the same. This is done to avoid overlapping interests and expertise in managing the fund.