Nepal Rastra Bank Removes Share Loan Ceiling, Boosting Stock Market Investment
Great news for investors in Nepal! The Nepal Rastra Bank (NRB) has just announced a significant change in policy that’s set to shake up the Nepali stock market. The previous cap of Rs 2.5 billion on share loans issued to individuals has been lifted, paving the way for increased investment opportunities.
This move comes following recommendations from the Capital Market Reform Task Force, spearheaded by former Finance Secretary Rameshwar Khanal. The aim? To revitalize the capital market and make share trading more accessible. The new directive to banks and financial institutions reflects this commitment.
Previously, banks faced restrictions on selling more than 20% of their primary capital investment in shares held for over a year. This restriction is now history! The NRB has removed this limitation, potentially leading to greater liquidity and activity in the stock market.
Furthermore, banks can now invest in the shares and debentures of listed companies for periods exceeding six months. Previously, investments were limited to durations longer than a year. This increased flexibility is expected to attract more investment and bolster the financial markets. Get ready for a potential surge in the Nepali stock exchange! This is a major development for Nepali investors looking to expand their investment portfolio. Keep an eye on the market trends and consult your financial advisor for the best investment strategies in this evolving landscape. This policy change should create more opportunities for investing in Nepal.
