Will NEPSE Get a Short Selling and Derivative Market? The Operational Reality
Summary
Nepal plans to introduce intraday trading, short selling, and derivatives in NEPSE to modernize its capital market and provide new trading opportunities.
Key Points
- Nepal Stock Exchange (NEPSE) has historically operated as a market where investors profit only when prices rise.
- Finance Minister Dr. Swarnim Wagle announced plans to introduce intraday trading, short selling, and derivatives in NEPSE within fiscal year 2083/84.
- Short selling allows investors to profit from stock price declines by selling borrowed shares and buying them back at lower prices.
- Successful implementation requires upgraded trading systems and regulatory readiness from SEBON and CDSC to ensure smooth and secure operations.
