List of 87 Listed Companies Eligible for Margin Trade Purpose

Nepal Stock Exchange Limited (NEPSE) has made available the list of stocks that are eligible for margin trade purposes.

Margin is the sum of money borrowed from a broker to pay for an investment, which is calculated as the difference between the investment's overall value and the loan sum.

To cover the credits risk the holder presents for the broker or exchange, an investor must deposit the margin with their broker or exchange. If an investor borrows money from their broker to purchase financial instruments, borrows money to sell those same instruments for a loss, or enters into a derivative transaction, credit risk is created.

Margin trading refers to the practice of using borrowed funds from a broker to trade a financial asset, which forms the collateral for the loan from the broker.

A total of 87 listed companies are eligible for margin trading.

Scrips can be used for margin trade if the following requirements are met:

• Minimum of 10,000 shareholders of the stock.
• The net assets of the company should not be below the paid-up capital.
• Minimum dividend of 10% in last two fiscal years.