Nepal Rastra Bank has made a major change for share investors. The central bank has removed the previous limit of 25 crore rupees on share mortgage loans.
Before this decision, individuals could take a maximum of 25 crore rupees in loans by pledging their shares. Now, that restriction no longer exists. Investors can borrow any amount depending on the value of their shares and the bank’s own lending rules.
This decision was made based on the recommendation of the Capital Market Reform Task Force. The group suggested removing the cap to make the capital market more active and flexible.
Experts believe this move could increase investment and bring more liquidity to the market. However, some also warn that it could make the market more volatile if borrowing grows too quickly.
With this change, banks and financial institutions will set their own internal limits for share-backed loans. The central bank will continue to observe how this decision affects the overall financial system. Nepal Rastra Bank has allowed investors to take unlimited loans against their shares, aiming to make the market more dynamic and investor-friendly.
