Investors Submit 6-Point Memorandum to Nepal Rastra Bank Amid Market Decline

Kathmandu – Following continuous declines in the stock market, investors have submitted a six-point memorandum to Nepal Rastra Bank (NRB), urging immediate corrective measures. On Thursday (Ashwin 2), the NEPSE index plunged by nearly 160 points, wiping out around NPR 300 billion in market capitalization in a single day. This sharp fall has severely shaken investor confidence.

The memorandum was jointly submitted with signatures from officials of the Share Investors Association Nepal, Nepal Capital Market Investors Association, and Independent Capital Market Investors Association.

The key demands outlined in the memorandum are:

• Allow banks and financial institutions to buy and sell shares freely in the secondary market.

• Increase the ceiling for personal share-backed loans (Single Obligatory).

• Introduce a clear policy to resolve issues regarding dividend distribution by microfinance institutions.

• Review and clarify the investment limit imposed on banks and financial institutions in the stock market.

• Allow cooperatives to also provide share-backed loans.

• Facilitate easier access for Non-Resident Nepalis (NRNs) to invest in Nepal’s capital market and repatriate profits earned from such investments.

According to the investor groups, implementing these demands would help restore stability in the market, rebuild investor confidence, and strengthen Nepal’s capital market in the long run.