{"id":317122,"date":"2026-09-24T18:51:25","date_gmt":"2026-09-24T13:06:25","guid":{"rendered":"https:\/\/insurancekhabar.com\/?p=317122"},"modified":"2026-09-24T18:55:05","modified_gmt":"2026-09-24T13:10:05","slug":"banks-can-invest-in-listed-shares-only-for-a-period-of-45-days-2","status":"publish","type":"post","link":"https:\/\/english.insurancekhabar.com\/banks-can-invest-in-listed-shares-only-for-a-period-of-45-days-2\/","title":{"rendered":"Banks can invest in listed shares only for a period of 45 days."},"content":{"rendered":"<p>Kathmandu. Banks and financial institutions can now invest in the shares of companies listed on the Nepal Stock Exchange (NEPSE) for a period of more than 45 days. <\/p>\n<p>This provision has been added by amending the integrated directive issued by the Nepal Rastra Bank for A, B and C class banks and financial institutions. In the amended directive, banks and financial institutions can now sell shares to the general public and invest in shares and debentures of companies already listed in NEPSE for a period of more than 45 days. Earlier, such a provision was for a period of more than 6 months. <\/p>\n<p>Likewise, the central bank has also barred banks and financial institutions from making short-term investments in shares and debentures of corporate institutions through any kind of arrangement. <\/p>\n<p>The Nepal Rastra Bank (NRB) has stated that the policies and procedures relating to investment in banks and financial institutions, government securities, Nepal Rastra Bank bonds and shares and debentures of corporate institutions should be implemented only after getting approval from its Board of Directors by incorporating at least the following matters in order to minimize speculative risk. <\/p>\n<p><span style=\"color: #0000ff\"> <strong>Topics related to policy provisions<\/strong><\/span><\/p>\n<ul>\n<li>Investment Objectives and Strategy,<\/li>\n<li>Investable shares, debentures, etc., <\/li>\n<li> Classification of investment instruments into banking books and trading books, <\/li>\n<li>Acceptable and Acceptable Investment,<\/li>\n<li>Eligible CountParty,<\/li>\n<li>Minimum and expected holding period, <\/li>\n<p>}<\/p>\n<li> Provision to invest in shares and debentures of a corporate body which has already been listed on the stock exchange exchange for a period of more than 45 days. Apart from this, short-term investment in shares and debentures of a corporate body cannot be made through any kind of arrangement, <\/li>\n<p>}<\/p>\n<li> Procedures and procedures to be followed in identifying, monitoring, controlling and reporting investment decisions and transactions with subsidiaries, shareholders and risk takers without any conflict of interest, <\/li>\n<p>}<\/p>\n<li> Clear procedure and authority for approving investments and provisions relating to the limitation on the amount of investment by the designated authority to carry out investment transactions, <\/li>\n<p>}<\/p>\n<li> Clear provision regarding capacity enhancement of the authority authorized to invest, <\/li>\n<\/ul>\n<p><strong> <span style=\"color: #0000ff\">Risk management topics<\/span><\/strong><\/p>\n<ul>\n<li>Clear division and responsibilities of various committees and units, including ALCO, <\/li>\n<li>Trading Strategy, Risk Appetite and Limits and Profit and Stop Loss Triggers and Limits<\/li>\n<p>}<\/p>\n<li>Investment Exposure and Concentration Limit, <\/li>\n<li>Daily Mark to Market (Trading Book),<\/li>\n<p>}<\/p>\n<li>Methods, procedures, and models for measuring and managing pressure testing and other market risks, <\/li>\n<p>}<\/p>\n<li>Methods and procedures to be followed in relation to the identification, measurement, monitoring, management, control and reporting of market risks, liquidity risks and other risks arising from investments, <\/li>\n<li>Regularly Internal Risk Rating of Financial Instrument Issuers, <\/li>\n<\/ul>\n<p><span style=\"color: #0000ff\"> <strong>Reporting topic{<\/strong><\/span><\/p>\n<ul>\n<li>Management Report, Breach Report, Report<\/li>\n<li> Audit, Trail, Log and Records along with the policies and procedures so prepared shall be submitted to the concerned Supervision Department of the Bank as prescribed. <\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Kathmandu. Banks and financial institutions can now invest in the shares of companies listed on the Nepal Stock Exchange (NEPSE) for a period of more than 45 days. This provision has been added by amending the integrated directive issued by the Nepal Rastra Bank for A, B and C class banks and financial institutions. In [&hellip;]<\/p>\n","protected":false},"author":16,"featured_media":229318,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[45117,45031,45159],"tags":[],"class_list":["post-317122","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bank-finance-en","category-banner-news-en","category-news-en"],"acf":[],"_links":{"self":[{"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/posts\/317122","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/users\/16"}],"replies":[{"embeddable":true,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/comments?post=317122"}],"version-history":[{"count":1,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/posts\/317122\/revisions"}],"predecessor-version":[{"id":317123,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/posts\/317122\/revisions\/317123"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/media\/229318"}],"wp:attachment":[{"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/media?parent=317122"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/categories?post=317122"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/tags?post=317122"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}