Kathmandu. The Securities Board of Nepal (SEBON) has issued ‘Margin Trading Facility Directive-2082’. This directive will come into effect after the date specified by the Board.
In the directive, at least 25 lakh units of shares of an eligible company should be listed for margin transactions. Companies with net worth equal to and more than paid-up capital, net profit in the last 3 years, IPO, and at least 2 years of listing of shares will be eligible for margin transactions.
Similarly, the directive has made various provisions regarding the qualifications of stock brokers who provide margin trading facility along with companies eligible for margin trading. Brokers with a paid-up capital of at least Rs 20 crore can avail margin transactions.
Similarly, brokers who have obtained RafSAF membership, depository membership and fulfilling other provisions specified by the Nepal Stock Exchange (NEPSE) will be eligible to provide margin trading facility.
This facility can also be provided to the depository member or the depository member who is the shareholder of the company or the main company of the securities broker business which is a subsidiary company.
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