Kathmandu. Nepal Investors Forum has demanded immediate repeal of the Rs 120 million limit on share pledge loans. The forum drew the attention of the Finance Minister to immediately dismiss the stock pledge loan saying that it has negatively affected the market.

This year's monetary policy stipulates that an individual or an institution can borrow up to a maximum of Rs. 120 million from a share pledge loan. Arrangement has been made to take a maximum of Rs. 120 million from the system.

The forum said that the market has been declining for the past several days due to the direct pressure on the market as investors have been active in selling shares and repaying loans due to this limit set for both individuals and organizations. Banks and financial institutions are allowed to disburse only 40 percent of the core capital as collateral, which is only 2.5 percent of the loan investment.

According to the forum, investors have to suffer due to the need to go to three banks and financial institutions for loans within this limit.