Central bank bars BFIs from selling listed share and debenture before a year of buying

KATHMANDU: Nepal Rastra Bank (NRB) has tightened the rules for banks and financial institutions to invest in the stock market.

Issuing a circular today, the central bank introduced additional regulations for banks and financial institutions to invest in securities trading. As per the circular, banks and financial institutions will no longer be allowed to buy and sell shares of listed companies in the secondary market for the short term.

BFIs will not be allowed to sell the listed shares and debentures within a year of buying them.

Similarly, banks and financial institutions are not allowed to invest in the shares of “D” class financial institutions, i.e. microfinance companies except for the purpose of calculating deprived sector loan. If such shares were purchased before this date, they are required to sell the shares by Poush, 2078.

Fiscal Nepal |
Tuesday May 25, 2021, 08:52:18 PM |

Leave a Reply

Your email address will not be published. Required fields are marked *