NRB Removes Rs. 25 Crore Cap on Share-Backed Loans, Eases Share Trading Rules for BFIs
Summary
Nepal Rastra Bank has removed the Rs. 25 crore limit on share-backed loans for individual borrowers and eased several restrictions on share trading and investments by banks and financial institutions to improve liquidity and support the capital market.
Key Points
- Nepal Rastra Bank lifted the Rs. 25 crore ceiling on share-backed loans for individual borrowers.
- Restrictions on selling more than 20 percent of core capital from long-term investments by BFIs have been removed.
- Investments by corporate bodies in shares and debentures now require a minimum holding period of six months instead of one year.
- Policy relaxations aim to enhance liquidity and support the capital market in Nepal.
