Amendment on Margin Trading by SEBON- Positive vibes for market.


The Nepal Securities Board has made the second amendment to the Procedure on Margin Trading Facility, 2075 BS.

The provision for providing margin trading services in the tradable securities in the Rules of Procedure on Margin Trading Facility, 2075 BS has been removed. Earlier, due to this provision, no any companies were eligible to give margin loans.

Similarly, the board has made amendments in the starting margin to suit the market. The Board has made an arrangement to give the investor the amount equal to 70 percent of the 120-day average final market price of the securities or whichever is less.

The board has also rejected the restrection that one can buy only 10 percent shares of at least one company with the loan amount.

Investors will now be able to invest in a single company with the loan amount taken from a broker company. But you have to invest only in the companies listed by Nepse. The board has added the facility for investors to buy any number of shares of any of the listed companies.


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