Nepal Rastra Bank gives theoretical approval for the margin trading system; Process to speed up after unveiling of monetary policy

Nepal Rastra Bank has given its theoretical approval regarding the margin trading system to Nepal Stock Exchange. Even after the approval of the Rastra Bank, the implementation of margin trading will take time.

The Rastra Bank has yet to create a procedure for the margin trading facility. After the creation of the procedure, the implementation procedure will move ahead. The brokers will also have to provide application in the NEPSE for enrolling to provide margin trading facility. The application provided in NEPSE will reach Nepal Rastra Bank for further examination.

The application received from the brokers will also be used as reference to prepare the procedure of margin trading. Nepal Rastra Bank will evaluate the applications presented by the brokers to determine the terms and conditions related to the margin trading procedure.

The procedure prepared by the Rastra Bank will include subject related to the interest rates, related authorities, period of reporting to the respective authorities, fines and penalties and such other issues.

The time has not been set for the brokers to provide application. But, the procedure will not be made within this fiscal year. The work of the procedure making is supposed to speed up after the unveiling of monetary policy.