If you are planning to purchase shares with loans from financial institutions during the initial public offering, simply give up the idea. Nepal Rastra Bank (NRB) has recently directed financial institutions not to extend loans for the purpose of purchasing shares during the first phase of initial public offering (IPO). However, the central bank has stated that institutions could be allowed to give loans after a week of the offering, if the shares are not fully subscribed until then. They are required to keep at least 50 percent margin in their lending. The financial institutions were providing loans up to 95 percent of the shares face value during the IPO, with a margin of only five percent. The companies normally float shares for a week during the IPO, during which time most of the companies see their shares over-subscribed. If their shares are not fully subscribed during that time frame, they could extend the offering period for a month, getting prior permission from the Securities Board of Nepal