Kathmandu. Nepal Rastra Bank (NRB), the central bank of Nepal, has removed the limit of single customer loan for margin shares. The government has removed this limit by issuing a Unified Directive Amendment to the Banks and Financial Institutions (BFIs) today.

Earlier, the margin loan from any one or all the licensed institutions was capped at Rs 25 crore. That limit has been lifted from today.

Earlier, it was said that such a limit would not apply only to institutional investors established for the main purpose of investing in the stock market.

It was said that the banks and financial institutions issuing such loans should renew the ÷loan only after ascertaining that the limit has not been exceeded while issuing or renewing the loan. The banks and financial institutions were required to maintain a hundred percent loan loss provision in case the loan was issued or renewed beyond the specified limit.

Likewise, the NRB has removed the provision of selling only 20 percent of the primary capital in a fiscal year from the investment that has elapsed in one year.