SEBON Approves Margin Trading: Investors Can Now Buy Stocks With Broker Loans
Summary
The Securities Board of Nepal (SEBON) has approved margin trading, enabling investors to buy stocks by paying a portion upfront and borrowing the rest from brokers under specific guidelines and conditions.
Key Points
- SEBON has authorized margin trading allowing investors to purchase stocks with part payment and broker loans.
- Investors must provide at least 30% down payment and maintain a minimum balance of 20% to avoid margin calls.
- Margin trading is limited to stable companies fulfilling specific profitability and shareholding criteria.
- Brokerage firms must meet capital criteria and get permissions from NEPSE and Nepal Rastra Bank to offer margin trading.
