Nepal Rastra Bank (NRB) has removed the Rs. 25 crore cap on loans secured by shares for individual borrowers, enabling them to secure loans against their shares with no fixed upper limit. In a circular sent to banks and financial institutions, the central bank also unveiled various policy relaxations designed to boost liquidity and bolster the capital market.
Moreover, the limitation allowing the divestment of only up to 20 percent of the core capital of BFIs from investments held for no less than one year has been abolished.
Rules regarding corporate investments in shares, debentures, and other financial instruments have also been made more accommodating. Such investments can now be made with a minimum holding period of six months instead of the previous one year.
