Nepal Rastra Bank lifts ceiling on share-pledged loans
Summary
Nepal Rastra Bank has lifted the Rs. 250 million ceiling on share-pledged loans for individual clients, allowing banks and financial institutions to provide such loans without any upper limit based on their risk assessment.
Key Points
- Nepal Rastra Bank removed the Rs. 250 million ceiling on share-pledged loans for individual clients.
- Banks and financial institutions can now give share-backed loans based on their own risk assessment without predefined upper limits.
- The minimum holding period for institutional investments in shares and debentures is reduced from one year to six months.
- The restriction on selling shares capped at 20% of primary capital annually has been removed to enhance market flexibility.
