KATHMANDU, Feb. 2 -- Nepal Rastra Bank (NRB) is mulling to remove the existing upper limit of Rs 120 million on margin loans.

The NRB through its Monetary Policy 2021/22 capped the limit of loans against shares to up to Rs 40 million that is issued by a single bank or financial institution. Similarly, an individual borrower has been allowed to take a maximum of Rs 120 million under this category. The share investors have long been criticizing the policy enforced by the central bank.

With the objectives to break the monopoly of large investors on margin lending, and ensure access of small investors to financial resources to invest in the stock market, the NRB had adopted a policy of 4/12 in the margin nature of share securities loans. Al...