Oct Sun 2023 01:55:08
Kathmandu. Nepal Rastra Bank has increased the share mortgage loan limit of 12 crores. Rastra Bank today issued a unified directive and increased the limit for both individuals and institutions. According to which the maximum single obligor limit for margin loans from any or all licensed institutions in share securities is Rs. 15 crore has been fixed. Earlier this limit was 12 crores.
For institutional investors established with the main purpose of investing in the securities market, the maximum limit of such loans has been fixed at Rs 20 crore. Earlier this limit was 12 crores. Finance Minister Dr. Prakasharan Mahat had been giving statements from the public forum that the limit of share mortgage loan should be increased saying that the share market is falling due to the policy of Rashtra Bank.
According to the needs of the current market, the Minister of Finance Dr. After repeated discussions and instructions of Prakashsharan Mahat, the National Bank has revised the integrated instruction 2079. Now, after this amendment, it is believed that the overall economy along with the stock market will be more stable. It is understood that the Central Bank has adopted a strategy of gradual easing as it may have other effects if it is relaxed all at once to improve the economy.
Currently, a person or organization can take a loan of up to 120 crores in share mortgage loan, but by increasing it, individual investors can take up to 150 crores and institutional investors can take such loans up to 20 crores. It is said that flexibility in personal hire purchase loans, construction materials industry and small businessmen will be allowed to restructure loans, banks will be facilitated to invest in private equity and venture capital, banks will have to maintain an additional 0.5 percent capital fund, and the decision to allow 50 percent loan for real estate mortgages will increase market sentiment. .