Nepal Investors Forum at NRB’s doorstep; requested for policy interventions for uplifting of market

With the long-prevailing uncertainty in the stock market, Nepal Investors Forum Committee Members have submitted Memorandum to the Governor of Nepal Rastra Bank, Dr. Chiranjibi Nepal and Deputy Governor, Mr. Chintamani Siwakoti. The letter submitted is directed towards the suggestions that will aid in the overall development of the stock market of Nepal. On behalf of all the investors, president of Forum Mr. Ambika Prasad Paudel presented the memorandum with the aim to develop stock market and promote confidence among investors. The highlights in the memo are:

1. Risk Weight Exposure for Margin Lending / Share Loans to be reduced to 100%.
2. Increase Margin Lending from 50% to 70%.
3. Inclusion of Bonus Shares & Right Shares in valuation before making Margin Calls.
4. Disparity among Promoter Share Loans for investors who hold more than 1% to be addressed.

On the aforementioned topics, governor Dr. Chiranjibi Nepal showed positive interest on decreasing the Risk-Weighted Exposure for margin lending and increasing margin lending on share loans as the 50% policy was implemented when the market was at a high level.  Regarding inclusion of Bonus and Right shares in valuation before making margin calls, a detailed discussion has been ensured along with participation of the investors.