Kathmandu. Kathmandu: Umbrella organizations of stock investors have demanded the Nepal Rastra Bank (NRB) to remove the limit on share mortgage loans and dividends of microfinance.
The office-bearers of the Stock Investors Association Nepal, Capital Market Investors Association and Independent Capital Market Investors Association reached the Rastra Bank today and jointly submitted four-point suggestions for the monetary policy for the upcoming fiscal year. Investors have suggested that the limit of Rs 150 million per single family on share loans provided by banks and financial institutions on the individual side should be completely abolished. They believe that this will help in creating a reliable environment and access to investors.
Similarly, it has also been suggested that microfinance institutions should be given full freedom to perform their duties by removing the current system as it is against the open economic policy principle adopted by Nepal in the context of not distributing more than 15 percent dividend to microfinance financial institutions.
Investors have also suggested that banks and financial institutions need to revise the limit of investing their primary capital fund in the capital market as per the current arrangement and maintain the limit as provided in the Banks and Financial Institutions Act 2073 BS.
Similarly, non-resident Nepalis (NRNs) have said that the existing legal hurdles for investing in Nepal’s capital market do not allow them to return the profits with that investment and suggested that the non-resident Nepalis should create the necessary investment environment by modifying the complexity and making a positive impact on the overall economy of Nepal.
Investors’ umbrella organizations believe that these suggestions will be included in the monetary policy for the next fiscal year and will contribute towards stability and sustainable development in the capital market.
In the meantime, the office-bearers of the investors’ organizations met newly appointed Governor Bishwanath Poudel and wished him a successful tenure. They wished for national economic stability and a prosperous future of the capital market during governor Poudel’s tenure.
