NRB Raises Margin Lending Limits, Removes Cap of NPR 120 Million

The Nepal Rastra Bank (NRB) has made amendments to the Integrated Guidelines of 2080 BS, increasing the margin lending limits and removing the cap on the upper limit of NPR 120 million.

According to the revised decision, individual investors will now have a margin lending limit of NPR 150 million, while institutional investors will have a limit of NPR 200 million, as stated in the amended guidelines issued by the Nepal Rastra Bank (NRB).

This move comes in response to pressure from investors in the stock market who argued that the existing cap on margin lending had a detrimental impact on the stock market.

Additionally, commercial banks are required to maintain their counter-cyclical buffer at 0.5 percent by the end of the current fiscal year.

These changes in margin lending limits are expected to provide investors with more flexibility and potentially boost activity in the stock market.