Nepal Rastra Bank (NRB) is internally preparing to implement key recommendations submitted by the Capital Market Reform Suggestion Taskforce. The points related to NRB are expected to immediately lift investor confidence in the share market, leading to growing pressure on the central bank for prompt execution.
One of the immediate recommendations concerns the interest payment on margin-type loans due in Ashoj 2082. The taskforce has advised that if investors clear the interest amount by the end of Poush, no additional penalty should be charged. Since the end of Ashoj is approaching, the market expects a clear message that investors will receive some time extension for payment. NRB sources say the central bank is preparing to issue a circular to banks and financial institutions accordingly. Discussions are ongoing to provide an extension until the end of Kartik, which is one month more than the original schedule suggested by the taskforce.
Alongside the interest-related relief, other recommendations are also under consideration. These include the removal of the NPR 25 crore cap on share-backed (margin) loans to be implemented within three months and revision of the one-year restriction period imposed on banks and financial institutions for share transactions. These matters are currently being reviewed by NRB’s Regulation Department, according to the central bank’s spokesperson Kiran Pandit, who confirmed the ongoing work to Bajarko Chirfar.
The Capital Market Reform Suggestion Taskforce, led by Rupesh K.C., Acting Executive Director of the Securities Board of Nepal (SEBON), had proposed an implementation model with three timeframes: immediate (within 3 months), mid-term (within 1 year), and long-term (beyond 1 year). The taskforce was given five days to submit its report. It submitted the report on Ashoj 9, and on the same day, the Ministry of Finance instructed Nepal Rastra Bank, SEBON, and NEPSE to initiate implementation of the recommendations.
This article was originally published on https://bajarkochirfar.com.
Translated with the help of AI and reviewed by our editorial team.
