The Nepal Rastra Bank has established a new framework for share-based loans from banks and financial institutions.

The licensed organization must provide a clear explanation in the relevant product document regarding the sale of shares to recover funds in the event of margin calls without requiring additional collateral.

The concerned banks and institutions must monitor the value and inform the borrower about the need for additional collateral when the value of the collateral decreases due to changes in the share market.

The calculation of margin for a share may involve counting rights and bonus shares, even if they remain unlisted.