Kathmandu. KATHMANDU: The Securities Board of Nepal (SEBON) has set the ‘haircut’ standard for margin loan trading facility in the share market.
This is the first time that this criterion has been set in Nepal’s stock market. SEBON has made a haircut provision in the draft Margin Loan Transaction Regulations, 2083. Opinions of stakeholders have been sought in this regulation. The regulations will be implemented after studying the suggestions received, Sebon said.
What is the arrangement of margin loan trading haircuts?
A haircut is a price adjustment or deduction based on the risk of a share. SEBON has set some standards for this arrangement.
When determining a haircut{
}
- Price Volatility
- Liquidity
- Market capitalization
- Turnover Volume
- Dividend Distribution to the Institution
- Other risk areas.
}
The detailed criteria for the arrangement of haircuts will be determined by Sebon through the guidelines.
Qualified securities and haircut criteria for margin trading
haircut
