Kathmandu. The Securities Board of Nepal (SEBON) has prepared a concept paper on the implementation of intraday trading of securities in Nepal, 2083. <\/p>\n
The Securities Board of India (SEBI) has released a concept paper on the implementation of intraday trading. Intraday trading refers to the system of buying and selling securities within a single trading day and closing the transaction within the same day. In the proposed system, it has been proposed to adopt the model of buying and selling first in the initial phase and then buying after selling first, while the provision of securities lending and borrowing and covered shortselling should be considered only after the necessary legal, technical and institutional infrastructure is developed. <\/p>\n
The main objective of this concept paper is not to present a decision on the immediate implementation of the inter-day transaction, but to evaluate Nepal’s market structure, legal and regulatory arrangements, institutional capacity, technological infrastructure, risk management and investor protection, and to identify the opinions, suggestions and areas of improvement of the concerned stakeholders through public consultation. <\/p>\n
Rationale and Purpose of the Concept Paper{<\/strong><\/span><\/p>\n }<\/p>\n According to the SEBON, the main basis for the feasibility study of inter-day trading in the secondary market is to increase liquidity in the secondary market, increase the efficiency of the transaction, increase the participation of institutional and business investors, and prepare the basis for the development of margin loan transactions, securities lending and lending, covered short selling and other advanced market systems in the future. <\/p>\n According to the Securities Board of Nepal (SEBON), the concept paper is aimed at identifying an inter-day trading model specifically suitable for Nepal, determining necessary legal and regulatory reforms, proposing a framework for risk management and investor protection, identifying the technological infrastructure requirements of the Securities Board, NEPSE, CDSC and securities entrepreneurs and laying the groundwork for phased implementation. <\/p>\n The main guiding principles of the concept paper include prioritizing investor protection, risk-based regulation, technology-based market operation, transparency and market integrity, phased implementation and using international best practices in Nepal’s context. <\/p>\n Policy and Economic Justification for Inter-Day Trading<\/strong><\/span><\/p>\n }<\/p>\n The vision of the concept paper is to develop interday trading as a complementary trading system to the modern secondary market and not just as a means of short-term trading or speculation. Its potential contribution is mainly related to market liquidity, price discovery, information adjustment, continuity of transactions and overall market efficiency. <\/p>\n Inter-day trading is expected to increase the frequency of transactions and competition for buy-sell orders, help in faster adjustment of available information to the price, and improve the depth of the market. However, it has been concluded that since such transactions in securities with low liquidity can increase the risk of price volatility and market abuse, it is not appropriate to qualify all listed securities equally at the initial stage. <\/p>\n Therefore, the proposed system will be based on the basic approach of ‘risk first, trading second’. It is considered necessary to develop adequate mechanisms for risk identification, risk control, market monitoring, technical preparation and investor protection before the expansion of interday trading. <\/p>\n According to the Securities Board, this concept paper has been brought with the objective of effectively implementing the ‘Capital Market Strengthening and Revival Action Plan, 2083’ issued by the Ministry of Finance on September 12, 2083 and the Securities Board’s policy for the current fiscal year. According to the Securities Board, the draft of the regulations related to margin loan transactions is being prepared and the regulations are being finalized by incorporating the suggestions received from the stakeholders. <\/p>\n According to the Securities Board of Nepal (SEBON), the concept paper has been prepared as a preparation for making necessary policy and legal arrangements for the implementation of the inter-day transaction and has been made public through public consultation to identify the opinions, suggestions and areas of improvement of the concerned stakeholders.<\/p>\n","protected":false},"excerpt":{"rendered":" Kathmandu. The Securities Board of Nepal (SEBON) has prepared a concept paper on the implementation of intraday trading of securities in Nepal, 2083. The Securities Board of India (SEBI) has released a concept paper on the implementation of intraday trading. Intraday trading refers to the system of buying and selling securities within a single trading […]<\/p>\n","protected":false},"author":16,"featured_media":122846,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[45031,45159,45180],"tags":[],"class_list":["post-317114","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-banner-news-en","category-news-en","category-stockmarket-en"],"acf":[],"_links":{"self":[{"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/posts\/317114","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/users\/16"}],"replies":[{"embeddable":true,"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/comments?post=317114"}],"version-history":[{"count":1,"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/posts\/317114\/revisions"}],"predecessor-version":[{"id":317115,"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/posts\/317114\/revisions\/317115"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/media\/122846"}],"wp:attachment":[{"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/media?parent=317114"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/categories?post=317114"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/tags?post=317114"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}