Kathmandu. The Securities Board of Nepal (SEBON) has already issued a directive on margin trading facility effective from February 15. However, it will take some time for stock investors to use the margin trading facility.
After the Securities Board of Nepal prepares the guidelines, the Nepal Stock Exchange (NEPSE) will have to formulate the procedures accordingly. However, NEPSE has already made a procedure related to margin trading facility a few years ago. However, due to some provisions of the procedure, most of the stock brokers did not provide margin trading facility to the client.
NEPSE Spokesperson Murhari Parajuli said that the work procedure will be ready after making some additions to the existing work procedure. “Preparations are underway to amend the work procedure. However, it has to be presented in the meeting of the NEPSE Board of Directors and approved. ’
Spokesperson Parajuli said that brokers should also prepare the work procedure accordingly once the work procedure is approved. “The directive clearly mentions what brokers should do to provide margin trading facility,” he said, “So investors will be able to use this facility only after the brokers do those things.” It will take some time. ’
According to Parajuli, some brokers have been providing margin trading facility to their clients as per the old procedure.
Bhakti Ram Ghimire, general secretary of the Stock Brokers Association of Nepal and president of Imperial Securities Company, said that with the amendment of the previous work procedure of NEPSE, brokers will also be able to provide investment margin trading facility by mid-March. “Brokers are ready to provide margin transactions,” he said, “This will especially benefit small investors.” You don’t have to go to the bank even for small amounts. ’
According to Ghimire, small investors will be benefited and the overall capital market will improve if everyone starts brokering facility for margin trading.
