Kathmandu. The Securities Board of Nepal (SEBON) has issued a preliminary draft of the ‘Margin Trading Facility Directive-2082’.
In the draft of the directive, various provisions have been proposed regarding the qualification of stock brokers who provide margin trading facility along with companies eligible to do margin trading. Brokers with a paid-up capital of at least Rs 20 crore can avail margin transactions.
Similarly, brokers who have obtained RafSAF membership, depository membership and fulfilling other provisions specified by the Nepal Stock Exchange (NEPSE) will be eligible to provide margin trading facility.
The stock broker will have to submit an application to NEPSE for approval along with its financial statements certified by the auditor before providing margin trading facility. The proposed directive states that NEPSE will provide consent after conducting necessary study on the applications received and also inform the Securities Board of Nepal (SEBON).
Similarly, brokers who have agreed to provide margin trading facility from NEPSE prior to the implementation of this directive will not have to take consent again. However, the documents that qualify as per this directive will have to be submitted to NEPSE.
The Securities Board of Nepal (SEBON) has sought suggestions from stakeholders on the draft of the proposed directive. A period of 7 days has been given for this.
