Suggestions from Capital Market Submitted To NRB for Monetary Policy 2080 Preparation
Governor of Nepal Rastra Bank (NRB) Maha Prasad Adhikari (centre) accepts suggestion letter from MP Hari Dhakal (left) and activist Tilak Koirala (right) for Monetary Policy, 2080 preparation.
A comprehensive set of eight suggestions has been collectively submitted by the capital market to the Nepal Rastra Bank (NRB) for the formulation of the Monetary Policy 2080.
The suggestions encompass the following key points:
1. Urging the NRB to establish a Rs. 10 Arba Fund dedicated to Margin Trading, facilitating the purchase of securities as per the NEPSE Margin Trading Procedure.
2. Encouraging the NRB to institute policy-level measures to establish non-Banking Financial Institutions (BFIs) that would play a crucial role in managing the necessary financial resources for Margin Trading conducted by stockbrokers.
3. Recommending the facilitation of loan disbursement to public limited companies for investment purposes in the capital market, along with safeguards to protect and promote institutional investors.
4. Advocating for a review of the margin limit on securities loans.
5. Proposing the removal of the one-year locking period imposed on investments made by BFIs in the capital market.
6. Calling for the formulation of policies to direct investments from established institutions and public funds designated for investment purposes into the capital market.
7. Encouraging the implementation of policies to incentivise BFIs to review their dividend distribution policies and strengthen their reserve and surplus. Additionally, suggesting the introduction of alternative mechanisms, in addition to existing provisions for selling debentures and bonds, to meet the capital requirements of banks if needed.
8. Requesting the revocation of Rule No. 26 and 27 in the proposed Economic Bill 2080.
Earlier, for the purpose of preparation of the monetary policy, NRB had commenced receiving suggestions and recommendations, which can be made until Ashad 10 at the Department of Economic Research. NRB is expected to draft the Monetary Policy, 2080 by first week of Shrawan.
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