Kathmandu, Aug 17 (TIWN) Foreign investors can register investment companies in Nepal but under certain strict conditions as per the new rules introduced by the Himalayan nation's government.

Foreigners who want to register an investment company in Nepal can bring foreign investments only in the form of share capital, according to the notice published by the Ministry of Industry, Commerce and Supplies, reports Xinhua news agency.  "Foreign investments in the form of loans, bonds and debenture won't be entertained to establish an investment company in Nepal," said the notice.  Jiblal Bhusal, director general at the Department of Industry, told Xinhua on Sunday that such a provision was made to control the outflow of foreign exchanges on a large scale.  "If the investment comes in the form of debt borrowings from foreign banks, bonds or debenture, that shall be repaid along with interests leading to a possible outflow of foreign exchanges in large amount," he said.