Margin Trading Directive 2082 to come into effect from Falgun 1, experts raise concern over implementation
Summary
The Securities Board of Nepal (SEBON) has approved the Margin Lending Directive 2082, effective February 13, introducing new rules for margin trading including brokerage capital requirements, eligible stocks, and margin limits.
Key Points
- SEBON approved the Margin Lending Directive 2082 effective from February 13, replacing the previous directive.
- Brokerage companies must have a minimum paid-up capital of Rs. 20 crore and meet membership requirements to offer margin trading.
- Margin loans can come from brokers’ funds, bank borrowings, or unsecured loans, with borrowing limits set relative to net worth.
- Eligible stocks for margin trading must meet specific criteria including minimum public shares, net profit history, and listing duration.
