SPSA Securities Introduces Margin Lending Facility at 7.5% Interest
Summary
SPSA Securities Ltd. has launched a margin lending facility for trading shares on NEPSE, offering loans at 7.5% interest and a 0.20% service charge. Investors must keep at least 30% initial margin, with margin calls at 20% and liquidation at 15%.
Key Points
- SPSA Securities Ltd. has introduced a margin lending facility for trading shares on the Nepal Stock Exchange using borrowed funds.
- The service covers A, B and G category listed companies and charges 7.5% annual interest plus a 0.20% service fee.
- Investors must maintain at least 30% initial margin, face a margin call below 20%, and risk liquidation below 15%.
- The company says the facility is meant to increase purchasing power, while warning that margin trading carries significant risk.
