NEPSE Revises Stock Dealer Guidelines to Enhance Market Liquidity; Loss-Making Stocks Now Tradable

Nepal Stock Exchange (NEPSE) has introduced significant amendments to its “Securities Dealer Operation Procedure, 2077,” aiming to make the capital market more dynamic, organized, and stable.

Under the revised rules, stock dealers are now allowed to trade not only in equities but also in government bonds, mutual funds, and debentures, following an expanded definition of securities. The new provision removes earlier restrictions that limited dealers to investing only in companies with three consecutive years of profit. Dealers can now invest in companies with growth potential, even if they are not yet profitable. However, they can only purchase shares of companies listed on NEPSE for at least six months.

The minimum paid-up capital requirement for eligible companies has been increased to Rs. 25 crores from Rs. 20 crores. Additionally, stock dealers can now carry out daily net trading up to 60 percent of their net worth. In a move to simplify procedures, dealers are no longer required to obtain prior approval from NEPSE for the list of companies they wish to trade. Informing NEPSE will now suffice, reducing procedural delays.

According to CEO of Nepal Stock Exchange, Chudamani Chapagain, the amendment aims to enhance liquidity and strengthen the role of stock dealers in risk management. NEPSE has formally notified existing stock dealers, including Nagarik Stock Dealer Company and Nabil Stock Dealer Company, about the revised provisions. The changes are expected to expand the scope of stock dealers and contribute to the overall maturity of Nepal’s capital market.