The central bank in order to implement the mechanisms rolled out in the Monetary Policy gave the direction today.
As per NRB, BFIs can issue margin lending up to 70 percent of the average price of the final price of last 120 trading days or market price of the stock whichever is less
However, refinancing or additional financing on the basis of a re-evaluation of the same stock is prohibited. Previously, such a limit for margin lending was 65 percent.
