Two Stock Brokers Secure Rs 3 Billion Bank Loans to Offer Margin Lending

KATHMANDU — Moving beyond the traditional commission-based revenue model, two stock brokerage firms in Nepal are stepping into the lending space by securing bank loans totaling Rs 3 billion. Dakshinkali Investment and Securities and Kalash Stock Market have completed their credit rating processes to acquire short-term loans, aiming to offer margin trading facilities to share market investors.

Dakshinkali Investment, a veteran firm with a decade and a half of market experience, is processing a Rs 2 billion credit line. CARE Ratings Nepal has assigned a ‘CARE-NP A3’ rating for this proposed facility. The firm, which holds a 1.69 percent market share, plans to utilize the funds to finance client stock purchases as per the Securities Board of Nepal (SEBON) guidelines, thereby diversifying its income sources.

Similarly, Kalash Stock Market, a relatively new but rapidly growing player, has secured a ‘CARE-NP A4+’ rating for a Rs 1 billion loan limit. Operational since 2024, the brokerage recently received official approval for margin lending in June 2026. Kalash’s business strategy involves borrowing from banks at lower interest rates and providing margin facilities to its clients at a premium.

This strategic shift is primarily driven by the Nepal Rastra Bank’s recent flexible policies on margin lending and SEBON's supportive guidelines. Both brokerages will channel these funds into Margin Trading Facilities (MTF) and working capital management. Financial experts anticipate that allowing brokers to issue credit directly will inject much-needed liquidity into the stock market and provide investors with more accessible funding opportunities.