Draft Regulations on Intraday Trading from Securities Prepared, What are the Features?

Kathmandu. The Securities Board of Nepal (SEBON) has prepared a draft of the Regulations on Intraday Trading, 2083.

According to the Securities Board of Nepal, the draft of these regulations has been prepared with the objective of making the speed of transactions, liquidity and pricing process more effective in the capital market of Nepal. The draft of the proposed regulations has been prepared on the basis of the ‘Concept Paper on the Implementation of Interday Trading of Securities in Nepal, 2083’ published on September 22.

salient features of the draft rules

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Stock exchanges and securities brokers should get approval from the Securities Board of India (SEBON) to conduct inter-day securities trading.TAG_OPEN_li_30

Only listed securities that meet the

• criteria will be eligible for interday trading.

Securities brokers should provide inter-day trading facilities only after assessing the client’s identity, financial capacity, risk bearing capacity and suitability.TAG_OPEN_li_28

{{TAG_OPEN_li_27} Securities brokers should check the client’s order, margin, risk limit and other necessary conditions before conducting inter-day trading.

Securities brokers and securities brokers should maintain necessary systems, security arrangements and real-time risk control systems for the operation of inter-day transactions.TAG_OPEN_li_26

• Investors should close the open position on the same day by buying and selling securities under inter-day trading. If the open position is not closed within the stipulated time, it will be automatically closed.
• Every customer making inter-day securities trading should maintain the required margin as prescribed, the variation margin may be fixed according to the fluctuations of the transaction.
• Maximum turnover limit shall be fixed for each customer, securities dealer, securities and the entire market.

Every TAG_OPEN_li_22 securities broker should put in place a risk management system, internal control system and grievance management mechanism.

Securities Board, stock exchanges and securities brokers should conduct inter-day investor education and awareness programs.TAG_OPEN_li_21

The Board may implement inter-day securities transactions in a phased manner.TAG_OPEN_li_20

It has urged the stakeholders to submit their suggestions on the draft of the securities regulation by November 20.