NRB urged to revise margin lending policy
KATHMANDU, MAY 10 -
The High Level Financial Sector Coordination Committee (HLFSCC) on Monday urged the Nepal Rastra Bank (NRB) to revise its provisions regarding margin lending to give respite to the ailing capital market. Currently, the Nepse index is hovering below the 350 mark which on August 2008 had touched the all time high of 1,175 points. On Monday, Finance Minister Bharat Mohan Adhikari, who is also the chairperson of committee, convened a meeting of the panel drawing the government’s attention towards the prolonged bearish run in the market. According to SEBON Chairman Surbir Poudel, one of the members of HLFSCC, participants of the meeting suggested that a mechanism be built to reduce the cost of funds, which has soared in the recent days due to protracted liquidity crunch in the banking sector.
SEBON, the capital market regulator, urged the government to allow the Citizen Investment Trust to expand its investment in the capital market and facilitate the entry of Employees’ Provident Fund. The meeting also agreed on early implementation and formulation of a five-year master plan to develop the capital market and setting up credit rating agencies and mutual fund companies.
Source : Kantipur
The High Level Financial Sector Coordination Committee (HLFSCC) on Monday urged the Nepal Rastra Bank (NRB) to revise its provisions regarding margin lending to give respite to the ailing capital market. Currently, the Nepse index is hovering below the 350 mark which on August 2008 had touched the all time high of 1,175 points. On Monday, Finance Minister Bharat Mohan Adhikari, who is also the chairperson of committee, convened a meeting of the panel drawing the government’s attention towards the prolonged bearish run in the market. According to SEBON Chairman Surbir Poudel, one of the members of HLFSCC, participants of the meeting suggested that a mechanism be built to reduce the cost of funds, which has soared in the recent days due to protracted liquidity crunch in the banking sector.
SEBON, the capital market regulator, urged the government to allow the Citizen Investment Trust to expand its investment in the capital market and facilitate the entry of Employees’ Provident Fund. The meeting also agreed on early implementation and formulation of a five-year master plan to develop the capital market and setting up credit rating agencies and mutual fund companies.
Source : Kantipur
