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Governor and Securities Board Chair hold crucial meeting on margin loan limits


25 September 2023  

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KATHMANDU: Nepal Rastra Bank Governor Maha Prasad Adhikari and  Securities Board of Nepal (SEBON) Chairman Ramesh Kumar Hamal convened a significant meeting to deliberate on key financial matters.

The meeting, which took place on Monday, centered around discussions regarding the capital market, venture capital, private equity, and the current state of the securities market and the broader economy.

During the dialogue, the SEBON chair proposed the need to increase the personal limit for margin-type share mortgage loans, suggesting an increase from 120 million in order to alleviate the prevailing pessimism in the stock market. He emphasized that expanding the limit for individual investors and widening it for institutional investors could bolster the confidence of share investors and contribute to increased government revenue from institutional investors.

In response, Governor Adhikari expressed a positive outlook on the proposal and assured a prompt decision on the matter.

Chairman Hamal also urged Governor Adhikari to consider allowing banks to invest in private equity, emphasizing the role of private equity in fostering innovation, expanding the economy, and benefiting small-scale investors. Governor Adhikari also conveyed his positive disposition toward this request.

Furthermore, Chairman Hamal discussed the development of the securities market and explored avenues for encouraging investments in private equity during the meeting with the governor.

Publish Date : 25 September 2023 21:08 PM

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