Kathmandu. Nepal Rastra Bank (NRB) has urged banks and financial institutions to invest in the stock market. NRB on Tuesday issued a circular urging banks and financial institutions to invest in securities trading.

NRB will no longer allow banks and financial institutions to buy and sell shares of listed companies in the secondary market for at least one year. It has been mentioned in the circular that no investment can be made for less than one year in the shares and debentures of the organization which has already been listed in the stock exchange by selling its shares to the public. Banks and financial institutions will be allowed to sell only up to 1 percent of their initial capital in a fiscal year.

It will not be possible to invest in the shares of class D microfinance institutions except for the purpose of calculating the poor class loans.

 If such shares have been purchased before (date 2078.02.10), they will have to be sold / disinvested by mid-December 2078.

Banks and financial institutions will not be allowed to buy shares of microfinance. More about this source textSource text required for additional translation information