Nepal has increased maximum foreign equity participation limit in domestic financial institutions to 85 percent from the present 67 percent, a statement issued Friday by Nepal Rastra Bank (NRB), the central bank of the country, stated.

According to the recently changed licensing policy of financial institutions, the equity participation of foreign investors will be within the range of 20- 85 percent in joint venture financial institutions to be established in Nepal.

The remaining share should be given to public investment.

However, joint venture financial institutions to be established with foreign investment of less than 50 percent of equity participation should earmark at least 30 percent shares to the general public stated the policy.

The policy has also barred blacklisted and loan defaulters from being a promoter of a financial institution.

However, those who were blacklisted earlier will be eligible to be a promoter only after three years of the removal of one's name from the blacklist.

The policy has also made it mandatory that one-third of the promoters should have academic qualification equivalent to graduate level.

Source: Xinhua