Page 95 - Account 10

Citizen Investment Trust (Nagarik Lagani Kosh)

Citizen Investment Trust is an institution established under the
provision of Citizen Investment Trust Act 2047 on 4 Chaitra, 2047
th
B.S. Its main objective is to provide investment opportunities to the
general public and developing capital market. It is basically a saving
and investment institution. The employees/citizens voluntarily
deposit certain amount of their saving which is invested in different
sectors for strengthening the national economy. CIT logo

Key Point Citizen Investment Trust is a financial institution which encourages the
general people to save a part of their earnings for the formation of capital
and expand the investment in various sectors.

Functions of Citizen Investment Fund
i. Mobilization of Saving
a. Operation of various natures and types of unit
schemes and mutual fund scheme.
b. Operation of different retirement plan like; gratuity
fund, insurance fund, subsidy fund.
c. Operation of investors accounting plan.

ii. Financial Assistant and Investment Nagarik Lagani Kosh building
a. Investing in the shares and debentures and government securities.
b. Providing term loan and bridge loan to corporate bodies.
c. Providing loan for purchasing shares and debentures.
iii. Capital Market Service
a. Provides underwriting services for the issue of share and debenture.
b. Provides consultancy services in the area of capital market about the price determination,
time of issue, amalgamation, absorption and purchase of corporate bodies.
c. Provides broker and market maker service in the stock exchange.
d. Provides security services.
Financial Cooperatives

Cooperative refers to living together and working together for the
fulfilment of common interest. Economically weak people voluntarily
organized to uplift their economic condition which is known as NEFSCUN logo
cooperatives. As such cooperative organization is a voluntary
organization formed by economically weak people for the fulfilment of the social,
economical and cultural expectations on the basis of equality with joint effort.
The cooperative organization started after the establishment of ‘Rochdale Society of
Equitable Pioneers on 24 October, 1944 AD, in England by Robert Owen with the
th
main objective of saving poor people from the economic exploitation, to eliminate the
middlemen and to make the ideal society. After that, such cooperative organizations are

94 Aakar’s Office Practice and Accountancy - 10 Financial Institutions 95