Fiscal Nepal
First Business News Portal in English from Nepal
KATHMANDU: The Nepal Stock Exchange has published a list of 123 companies eligible for margin trading, marking a significant step toward deepening Nepal’s capital market and expanding leveraged investment opportunities.
Under the newly introduced margin trading framework, investors will be allowed to borrow funds from stockbrokers only to purchase shares of companies included in the approved list. This effectively restricts margin-based investments to fundamentally stronger and compliant listed firms.
According to NEPSE’s margin trading guidelines, only companies meeting the following criteria have been included:
These benchmarks are designed to ensure that only financially stable, liquid, and compliant companies are eligible for leveraged trading, thereby reducing systemic risk in the market.
The introduction of margin trading allows investors to amplify their purchasing power by borrowing from brokers, but only within a controlled framework. By limiting margin eligibility to 123 companies, regulators aim to:
This move is expected to increase trading volume and liquidity in eligible stocks, particularly among institutional and high-net-worth investors. However, it also creates a two-tier market dynamic, where stocks outside the approved list may see relatively lower demand due to lack of leverage access.
Market participants say the success of margin trading in Nepal will depend on risk management by brokers, investor awareness, and effective regulatory oversight.
The full list of 123 companies has been made public by NEPSE, and investors are advised to review the eligible stocks carefully before engaging in margin-based transactions.
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