Investors Meet NRB Governor, Suggest Reforms to Boost Capital Market Confidence
Investors proposed easing share collateral limits, removing microfinance dividend caps, and offering interest payment relief to strengthen Nepal’s capital markets.
Representatives of Nepal’s investors and market organizations met with Nepal Rastra Bank (NRB) Governor Dr. Bishwo Poudel to discuss the current state, challenges, and future direction of the country’s capital market. During the meeting, the governor emphasized that all stakeholders must proceed cautiously amid the sensitive economic conditions. He noted that political and social stability directly affect market performance and that regulators should take a proactive role in fostering a positive market environment. On this occasion, investors presented five key recommendations to enhance market confidence: first, facilitate share-backed loans by maintaining an 80:20 margin while removing the existing Rs. 25 crore cap on individual and institutional investors; second, eliminate the cap on dividends distributed by microfinance institutions to their shareholders; third, extend deadlines for interest payments without penalties considering the current challenging conditions; fourth, mandate large institutional investors such as the Citizen Investment Trust, Employees Provident Fund, insurance companies, and Social Security Fund to allocate a fixed percentage of investable capital to the secondary market; and fifth, provide banks, financial institutions, and Non-Resident Nepalis (NRNs) with easy and unconditional access to the secondary market. Investors stressed that the NRB’s supervisory role is crucial to restore confidence and drive structural reforms in Nepal’s capital markets.