Nepal Rastra Bank has instructed founder shareholders of banks and financial institutions to bring their equity holdings within regulatory limits by fiscal year 2030/31. Individual ownership is capped at 15% in one BFI and 1% in others, with higher limits of 25% and 10% for ‘D’ class institutions. Shareholders failing to comply will face blocked dividends, restrictions on rights issues, and possible forced mergers or acquisitions. The NRB has also withdrawn the earlier provision allowing government funds such as EPF and CIT to hold up to 25% equity, granting them five years to reduce excess holdings.
