Nepal Rastra Bank has issued new circular for the banks & financial institutions. Majorly cicular are related to Margin Lending, Stock broker, Base rate of the financial institutions. This circular is for applied for all “A’, “B” and “C” class financial institutions.
Major highlight of circular are;
- Margin limit for share loan is increased to 65% from 50%
- Risk weighted exposure has been reduced to 100% from previous 150% on the share loans
- While margin call BFIs should consider bonus share & right shares before listing
- Commercial bank can work as Share Broker through subsidiary company.
- Banks can float 40% of primary capital on share loan which was 25% before
[pdfviewer width=”800px” height=”849px” beta=”true/false”]http://sharesanjal.com/wp-content/uploads/2018/12/nrb.pdf[/pdfviewer]
