Delayed by almost a year now, what is the status of implementation of Margin Trading?

The investors in Nepal have to wait for some more time for the implementation of margin trading. As per Securities Exchange Board of Nepal (SEBON), more coordination is required with Nepal Rastra Bank for the implementation of margin trading. The board had previously prepared a report regarding the same upon detailed study of the issue and decided to move forward as per the said report.

As per the spokesperson of SEBON, “After the completion of the study regarding the issue, the board will discuss the matter of implementation with Nepal Rastra Bank. The board will also discuss the procedure of providing the loan and the rate of interest to be charged.”

A year ago, on 21^st Kartik, the board had directed NEPSE to make the procedure for the purpose of implementation of margin trading. On 3^rd Jestha, the board accepted the procedure. The board had also mentioned that if the approval of NRB is required for the implementation, the procedure is to be made after the approval is received. NRB sent a letter to NEPSE stating, “After the approval from brokers and NEPSE, NRB’s approval will be provided”, due to which the process of implementation was delayed.

After the implementation of margin trading, investors can take a loan from the broker company to buy shares in the secondary market. But due to the delay in approval of the procedure, margin trading has not been implemented yet.