KATHMANDU: Nepal Rastra Bank (NRB) has removed the Rs. 250 million ceiling on share-pledged loans for individual clients. The central bank amended its Integrated Directive 2081 on Wednesday, allowing banks and financial institutions to provide share-backed loans based on their own risk assessment, without any predefined upper limit.

Previously, former governors had imposed strict limits ranging from Rs 4 crore to Rs 25 crore per client. Governor Bishwanath Poudel’s revision now gives investors greater access to credit, easing restrictions that had long constrained the market.

The amended directive also introduces more investor-friendly measures for institutional investments. Banks and financial institutions can now invest in shares, debentures, and other instruments with a minimum holding period of six months, down from the earlier one-year requirement. Additionally, the restriction limiting the sale of shares to 20% of primary capital within a financial year has been lifted, allowing for more flexibility in trading.

The move aligns with recommendations from the Capital Market Reform Taskforce and aims to boost market activity, enhance investor confidence, and create a more dynamic and accessible capital market in Nepal.