Kathmandu. Nepal Rastra Bank has started preparations to tighten the share market.

A source informed that the amount going for share pledge loan is being tightened through the monetary policy of the Fiscal Year 2078/89.

Despite the NRB's austerity measures, both the Nepse index and the transaction amount have been steadily increasing. Today, Sunday alone, the Nepse high point reached 2919.10 points, while the turnover was 17 billion 27 crore 17 lakh 87 thousand 524 rupees.

NRB had tightened share-based lending through quarterly monetary policy review. The 120-day average price and the current share price, whichever is less, was 70 per cent. NRB had extended the monetary policy from 120 days to 180 days through quarterly review. By doing this, the loan to be secured by shares will be reduced by 8 to 10 percent.

Similarly, NRB had stopped banks and finance companies from buying shares of Luvitta companies. Similarly, provision has been made not to invest in the secondary market for a short period of time i.e. less than one year.

Explaining that an investment of less than one year is a short-term investment, the budget has provided 7.5 percent capital gains tax on the sale of shares within one year of purchase and only 5 percent profit tax on those who sell more than one year after purchase. Still, the stock market is shining brightly.

Officials at the National Bank of Nepal (NBP) say banks and financial institutions and some big players have been forced to tighten their grip on the stock market unnaturally.