SEBON urges Rastra Bank to accept 75% of the stock value as margin loan; makes a request to remove limitation in online fund transfer between stockbrokers and investors

Securities Exchange Board of Nepal has issued a statement stating that it has urged Nepal Rastra Bank to make a few amendments in the margin rate for the growth of NEPSE. As per the media statement, the board has urged the central bank

*To relax the policy for margin loan and margin call where the BFIs will provide margin loan facility that is equal to 75% of the stock valuation and give margin calls only after the reduction of stock price by 10%

*To extend the loan repayment period for already issued margin loans up to the end of Aswin 2077

*To remove the upper limit cap that is in place for digital payment between stockbrokers and the customers.

*To allow banks to reduce interest rates while issuing a stock loan to the stockbrokers.