As per the agreement, the government has agreed to initiate process of increasing the number of brokers from coming week and it will also allow trading of the shares of troubled Nepal Bank Limited. Likewise, the government has also agreed to raise the earlier limit of margin lending to 60 percent of the market value from existing 50 percent. [break]
In addition to the extension of the limitation, the latest policy announced by the central bank under which lending banks need not to issue margin calls even if the market prices of the collaterals-pledged shares decline up to 10 percent of its value will continue.
Both the sides have agreed to continue the policy of allowing the lending banks to renew margin type lending of up to 75 percent in case the borrowers have repaid at least 25 percent of their loans and cleared all liabilities, including interests.
However, the central bank will look into the possibilities of increasing the limit to 100 percent after the appointment of a new governor.
The government has also assured the agitating investors that it will not immediately bring the process of transferring 19 percent promoters shares to ordinary shares into implementation.
However, the issues related to capital gains tax will be addressed in the coming budget for the fiscal year 20010/11, said an investor, who participated in the negotiations.
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