Rs 200 million limit on share mortgage scrapped

The maximum limit Rs 200 million set for institutional loan has been abolished.

Unveiling the Monetary Policy for the fiscal year 2024/25 here today, Governor of Nepal Rastra Bank Maha Prasad Adhikari informed about this flexibility in share mortgage loans.

The Bank, however, has not introduced any new provision as for the share mortgage to individuals.

Governor Adhikari said, “At this situation when the margin trading could not be done easily and systematically, the existing maximum limit of Rs 200 million for the loan provided by banks and financial institutions to institutional investors for margin trading in share securities.”

The Monetary Policy stated that the 34 security brokerage companies have been approved to promote the concept of margin trading concept by gradually reducing the direct loan investment from the banks and financial institutions in the securities market.