Margin trading clearing the final steps before taking off; NEPSE and CDS & clearing ready

Nepal Stock Exchange (NEPSE), earlier this Fiscal Year, had introduced Margin Trading Procedure 2075 outlining the requirements, procedure and functions regarding margin trading. Post that, NEPSE opened application for all interest brokers and received a total of 17 applications.

According to the spokesperson of NEPSE, they reviewed all the application and due to problems in documentation and requirements only 3 were approved and sent to Nepal Rastra Bank (NRB). The NRB has already given green light to these three brokers. They are:

1. Secured Securities (Broker number 36)
2. Vision Securities (Broker number 34)
3. Kristal Kanchanjunga Securities

The spokesperson added, since the approval has already been given, the brokers will now require minor tweaks in software and once they've done that they'll come to NEPSE and can begin margin trading.

Similarly, CDS and Clearing's system is also ready although not much changes were required in that front.

As with the brokers, the NEPSE has also set criterias for companies for them to be eligible to be traded under margin trading for security. These crietria are:

-At least 10 thousand shareholders
-Net assets not less than the paid-up capital
-Distribution of at least 10% dividend for the last two fiscal years
-Traded in NEPSE for at least 80% days of total trading days
-Completion of AGM within 6 months of completion of last FY

The list of currently approved companies are here.