Margin Lending Directive, 2082, Comes Into Effect From Today
Summary
The Margin Lending Directive, 2082 approved by the Securities Board of Nepal, has come into effect, setting new rules for margin trading including broker capital requirements and eligible stocks.
Key Points
- The Margin Lending Directive, 2082, replacing the 2074 directive, is effective from Falgun 1.
- Brokerage companies must have a minimum paid-up capital of Rs. 20 crore and necessary exchange memberships to provide margin trading.
- Margin loans can be extended up to five times the broker's net worth, with client limits set to 10% of total margin facility.
- Only selected listed companies meeting strict criteria on share public float, net worth, and profitability are eligible for margin trading.
