NEPSE Publishes List of 123 Companies Eligible for Margin Trading; Service to Begin from Baisakh 2

Kathmandu — The Nepal Stock Exchange (NEPSE) has published a list of 123 listed companies eligible for margin trading under the “Margin Trading Facilitation Procedure, 2082.” The list includes companies that meet the required criteria, marking a significant step toward expanding trading mechanisms in Nepal’s capital market.According to NEPSE, investors will now be able to pledge shares of these companies as collateral and obtain loans through brokers (margin loans) to buy and sell additional shares. The provision will be implemented as per Clause 9 of the procedure, enabling investors to leverage their capital for higher market participation.Companies included in the list have been selected based on factors such as sufficient market capitalization, high liquidity, adequate public float, profitability, and positive net worth. In addition, only those companies that regularly publish financial statements and are not under regulatory action or surveillance by the Securities Board of Nepal have been included.The updated list covers all commercial banks. It also includes 11 development banks, while 6 development banks have been excluded. In the finance sector, 11 companies are included and 7 have been left out. Similarly, 17 microfinance institutions, 12 life insurance companies, and 11 non-life insurance companies are part of the list. In the hydropower sector, 24 companies have qualified for margin trading. Notably, Himalayan Reinsurance has been included, while Nepal Reinsurance has been excluded this time.While margin trading provides investors the opportunity to invest more with limited capital, it also carries higher risk. Regulators have emphasized that the list will be reviewed and updated periodically to maintain market stability and discipline.Meanwhile, the Stock Brokers Association of Nepal has announced that margin trading services will officially commence from Baisakh 2. In a statement issued on Tuesday, the association confirmed that the facility will be available through eligible brokers.Although most preparations have been completed, some technical aspects are still being finalized. Once operational, the facility will allow investors to leverage their existing holdings to expand their trading positions.The Securities Board of Nepal has already issued the “Margin Trading Directive, 2082,” while NEPSE has introduced the corresponding operational procedure. With the implementation set to begin soon, the move is expected to usher in a new phase in Nepal’s stock market development. https://www.nepalstock.com/api/nots/news/notice/fetchFiles/58b9968c2a4c721ddc2be46b327f1895.pdf