Major Changes of Nepal Rastra Bank Directives That Can Affect the Nepal Stock Market

In the Year 2082 BS. 

On the date of 8th October 2025 (22 Asoj 2082), Nepal Rastra Bank have done some changes on it's directives that could affect the Nepal Stock Market NEPSE. 

The cap on margin-type share collateral loans has been lifted by Nepal Rastra Bank. By revising the Integrated Directives 2081 that were sent to banks and other financial institutions, the central bank brought about this adjustment.

In the past, a single customer's maximum loan amount under margin-type loans backed by shares was Rs. 250 million (25 crore).

Likewise, additional flexibility has been added to the arrangements pertaining to the purchase of shares, debentures, and other investments in organizational institutions. Such investments are now only permitted by the central bank for durations longer than six months.

Through any kind of arrangement, banks and other financial institutions are prohibited from making short-term investments in the stock of organized entities. 

An equivalent amount from retained earnings must be used to transfer the invested amount to the Investment Adjustment Fund if an investment is made in organized institution shares or debentures that have not yet been listed on the stock exchange and those shares or debentures are still unlisted three years after the investment date. 

Until the corresponding shares or debentures are listed, the money in such a fund cannot be spent.

Similarly, the clause that permitted the sale of only 20 percent of primary capital assets-out of investments held for more than a year—within a fiscal year has been eliminated. 

This changes could affect the Nepal Stock Market (NEPSE). Making such provision of a limited cap for single customer on margin-type loans as one of the major cause, NEPSE was on bearish momentum in the past years. 

This changes on directives of NRB could affect the NEPSE's momentum towards the bullish.