The Nepal Rastra Bank (NRB) has barred the banks and financial institutions (BFIs) from making investment in the stock market for a period of less than one year report The Rising Nepal.
Amending its Integrated Directives 2020 on Tuesday, the central bank has applied strict measures on BFIs’ investment in the share market.
According to the daily, it has allowed the investment in the shares and debentures of the companies that have issued shares to the public and are listed at the securities trading market for more than one year’s period.
“No BFI is allowed for short-term investment in any way in the listed companies,” said the central bank.
It added a new provision in the circular and said that the BFIs could sell shares worth only up to 1 per cent of the primary capital of the investment in one fiscal year. However, this provision will not be applied to the shares acquired before 24 May, 2020 reports The Rising Nepal.