Financial Institution- Bank and its Types
Financial Institution:Financial institution are those organizations which are established in an economic system to help to borrow and grant loans, act as intermediary between the saver and the borr...
Citizen Investment Trust
Citizen Investment Trust
Citizen investment trust is a non-banking financial institution registered and operated under citizen investment trust act 2047. It is mainly established to avoid and expand investment opportunities to the public and encourage them for saving. It accepts the amount deducted from the monthly salary of employees working in the government offices, corporations, and other organization. It is a voluntary deduction which can be made at a certain rate. The amount collected by way of voluntary deduction is invested in productive sectors. Thus, as financial institutions, it collects a sum, mobilizes into various sectors, and contributes for economic development. It provides various economic facilities to the employee after their retirement.
Functions of Citizen Investment Trust
The functions of Citizen Investment Trust are grouped under three main heads as stated below: -
- Saving mobilization:
- To operate various types of mutual fund schemes and citizen unit schemes.
- To operate various types of retirement schemes such as pension fund, gratuity fund, and insurance fund.
- To operate investors account scheme.
- Financial support and investment:
- To invest in the shares and debentures of corporate organizations and government bonds.
- To provide term loan and bridge loan to corporate organizations.
- To provide the loan for buying and selling securities.
- Capital market service
- To issue various types of securities and to provide sales management services.
- To provide underwriting services.
- To provide brokerage and consultancy services in the capital market.
