Nepal Stock Exchange Releases List of Companies Eligible for Margin Trading

Sun, Feb 25, 2024 5:09 PM on Stock Market, Latest,

The Nepal Stock Exchange Limited (NEPSE) has unveiled the list of companies deemed eligible for margin trading. This revelation comes as part of the procedural compliance with Section 9(1) of the Fiscal Year 2075 guidelines, following the completion of criteria specified in Section 3, Sub-section 8.

A margin lending system where the loan amount for a specific share is determined by the lower value between the last 180 days' average market price and the Last Traded Price (LTP), with up to 70% of this valuation available as a margin loan. The duration of such loans will not exceed one year, and borrowers can renew after paying full interest, excluding bonus and rights shares. Banks must inform borrowers if share collateral value drops, and additional shares are not applicable for renewal. Entities not meeting capital adequacy ratios, sustained losses, or other criteria are ineligible for margin lending. Banks can provide up to 40% of primary capital in margin lending, complying with legal regulations and Nepal Depository Board policies. The Nepal Rastra Bank approves businesses based on guidelines in the Nepal Rastra Bank Act 2058 Section 76.

The following is the list of 112 companies considered eligible for margin trading: