Nepal President Bidya Devi Bhandari has called on parties to form a new majority government by Thursday after the one headed by the embattled Prime Minister K P Sharma Oli lost a trust vote.

The Office of the President, in a statement on Monday, said President Bhandari has decided to invite parties to form a majority government pursuant to Article 76 (2) of the Constitution of Nepal.

She has allotted the parties three days' time, asking them to stake their claim to the government by 9:00 pm on Thursday, The Himalayan Times reported.

As per the constitutional provision, a candidate requires to submit signatures of lawmakers belonging to two or more political parties in parliament to the Office of President within the stipulated time. The President's announcement came shortly after Oli lost a trust vote in the House of Representatives. Oli, who decided to seek the trust of the 275-member House on his government, managed to garner only 93 votes, which fell short of 43 votes to reach the 136-mark and win the vote of confidence during a special session of the lower house.

A total of 124 members voted against the confidence motion while 15 members stayed neutral, Speaker Agni Sapkota announced on Monday. The session was attended by 232 lawmakers.

Oli, 69, lost the vote of confidence motion, days after the Nepal Communist Party Maoist Centre led by Pushpakamal Dahal ‘Prachanda' withdrew its support, reducing the government to a minority.

After Oli lost the trust vote, the Nepali Congress, the Communist Party of Nepal (Maoist Centre) and a faction of the Janata Samajbadi Party led by Upendra Yadav urged President Bhandari to invoke Article 76 (2) of the Constitution to pave the way for the formation of a new government.