Jan 18, Kathmandu- Investment of social institutions (NGOs) in microfinance financial institutions has become illegal. However, the concerned government bodies have not shown any interest in curbing such illegal investments. Their investment has become illegal as the microfinance institutions have not sold the shares of the NGO to people within the time limit given by the Registrar of Companies.

The company guideline 2072 issued by the office stipulates that legal entities, NGOs, partnership firms, or private firms, as well as cooperatives, are not allowed to invest in for-profit companies and return the previous investment.

The deadline given by the directive to return the shares has also expired in 2076 BS. Their investment has become illegal as the microfinance institutions have not transferred the shares of GASUS to a natural person within the stipulated time. However, no further action has been taken even though the investment has become illegal.