NRB Removes Margin Lending Cap of Rs 12 Cr; New Cap of Upper Limit Set at Rs 15 Cr for Individuals and 20 Cr for Institutions

Amending the Unified Directives 2079, the Nepal Rastra Bank (NRB) has increased the margin lending. With this, the cap of upper limit of Rs 12 crore for margin lending is removed.

As per the new decision, the margin lending is fixed at Rs 15 crore for individuals and Rs 20 crore for institutional investors, the Nepal Rastra Bank (NRB) said in its amended directives.

The investors of the share market were piling pressure on the central bank to remove the existing cap on margin lending adding that this has had a serious impact on the share market.

Likewise, the commercial banks should have to maintain their counter-cyclical buffer to 0.5 per cent by the end of this fiscal year.