SEBON Drafts Margin Lending Regulation to Modernize Nepal’s Capital Market

Summary

SEBON has drafted a new margin lending regulation to modernize Nepal’s capital market and introduce practices such as intraday trading, securities lending and borrowing, and covered short-selling. The proposal is now open for public consultation before finalization.

Key Points
  • SEBON has prepared a draft Margin Loan Transaction Regulation as the first step toward introducing margin lending in Nepal.
  • The proposed framework would let eligible investors use their own equity margin and loans from securities brokerage firms.
  • The broader modernization plan also includes intraday trading, securities lending and borrowing, and covered short-selling.
  • SEBON has opened the draft for public consultation and invited feedback from stakeholders by email.
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