Kuber Wizz is a stock investment program that has been formulated by KCM, and is the first of its kind in the country. The program especially revolves around a simulation training which will allow the students to get practical experience with stock trading and investment. The program therefore helps add value to the current BBA program by ensuring that students get ample real world experience on stock market trading and functioning.
The program will pass through three phases, including Fund Pooling/ Loan Processing, Investment/ Trading and Loan Settlement. Each student has to compulsorily go through these phases before s/he is certified to have completed the program.
Fund Pooling/Loan Processing
The participants of the program are required to accumulate an initial investment fund of at least NRs. 30,000 in the first phase. The college will be providing a sum of NRs. 15,000 (as a loan) for each student for the purpose. The students have to manage their own funding of at least NRs. 15,000 for the same purpose. However, any participant wishing to invest more amounts can do so by adding up the desired sum. Each participant is required to go through a full loan processing procedure for sanctioning the loan amount that is to be issued by the college. This will involve a formal process of loan application, acceptance and signing of loan agreement. The loan will be issued at an interest rate of 8% per annum, and will be due in a single year itself. The details of interest payment and loan settlement will be provided in the upcoming section.
The documents that are needed along with the Loan Application and the Loan Agreement are listed below:
Once the investment fund has been pooled, the participant needs to proceed towards real world stock trading. The participants are free to involve in this process, either by investment in the Primary Market by buying shares during Initial Public Offering (IPO), or by buying and selling of stock that is listed in the Nepal Stock Exchange (NEPSE) through secondary trading (NEPSE). The participants will have to complete these procedures for themselves, with periodical guidelines from the program administrators. Participants opting for the investment in IPO need to search for proper publicly listed companies whilst others opting to go for the investment in secondary market can go to any of the share market brokers and fulfill the required procedures for buying and selling of shares. The program will not assign any particular broker for the program. The participants can trade the shares as frequently as they wish until the program officially terminates.
Those participants who are already involved in stock trading are strictly prohibited to report about their earlier transactions that were done prior to the start of the program. They must invest the pooled amount during the active program period and report accordingly.
The Loan Settlement process will start from the first month of the program. For the remaining period, interest rate of 8% per annum will be incurred for the sum provided by the college to the participants. However, for the investor’s convenience, the interest for the first month will not be charged. However, each of the participants has to pay back timely interest for the rest of the eleven months. Further details on repayment are presented in the loan settlement schedule below.
However, the participants who wish to make a partial/complete principal payment of the college loan can do so at the end of the fourth month before the loan actually matures. By doing this, s/he can have an added advantage of periodical interest reduction/ savings. Nonetheless, participants must maintain a portfolio worth NRs. 30,000 throughout the program period, which might cause a rise in the participant’s second cut up.
The penalty for all the due amounts (both principal and interest) will be charged at a rate of 10% per annum for the first month and 20% per annum thereafter.
The participants are suggested to engage in constant follow-up schedules with the program administrators for reporting their investment progress and clarifying any doubts that may arise during the process.
However, the participants must submit monthly report on their updated investment portfolio including the Demat Account Statement (DeAS) or the Internet Based Demat Account Statement (IeDAS) in order to successfully complete the requirements of the program.
Kick Starter Event
A preparatory seminar on Investment in Stocks will be held that might encompass the exceptional experience of tycoons of Nepalese Stock Market during the first month, with cordial presence of Mr.Sita Ram Thapaliya, CEO, Nepal Stock Exchange (NEPSE), Mr. BhismaChalise, CEO, Civil Capital Market Ltd., and Mr. Nitesh Kumar Agrawal, ABC Securities Pvt Ltd.
Investor Evaluation and Winner Selection
This program will be actively monitored throughout the execution period. Each of the investor will be evaluated from the inception itself. The evaluation criteria will encompass the quality of intuition and judgment of the investor, efficiency of fund mobilization, interest during participation, and finally the net capital return accumulated by the participant.
Soon after the program concludes, three of the best investors will be awarded with financial incentives. The rest of the participants who successfully complete the program with appropriate results at hand will also be certified as Kuber-Wizzers.
A team of dedicated staff with expertise in stock market trading, financial management and investment decisions will administer the program throughout the year. The administration will comprise of the Advisory Board and the Management Team, each of which will be formed as mentioned here: