थप ६ ब्रोकरले मार्जिन कारोबार अनुमति पाउँदै, बजारमा कर्जा विस्तारको तयारीSix More Brokers Set to Receive Approval for Margin Trading, Preparing to Expand Market Lending

Kathmandu: Six additional brokerage companies are set to receive final approval to provide margin trading services in Nepal’s secondary market. After obtaining the final clearance from the Nepal Stock Exchange (NEPSE), Capital Max, Share Pro Securities, Kalash Stock Market, Machhapuchhre Securities, SPS Securities, and Sajilo Broker will be able to offer margin facilities to investors.

The companies have already completed the required approval process from Nepal Rastra Bank, with only the final approval from NEPSE remaining. Once the approval is granted, the brokers can begin providing margin trading services.

Currently, 31 out of 92 brokerage companies have received permission to operate margin trading facilities. While some brokers have started limited services, others are preparing to expand their operations by arranging larger funding sources from banks and financial institutions.

Several brokerage firms are moving ahead with credit rating processes to secure bank loans for margin lending. Capital Max Securities, for instance, is undergoing credit rating for a proposed loan of Rs 500 million. Other brokers, including Nasa Securities, Vision Securities, and Trishakti Securities, have also initiated rating processes for larger credit facilities.

Nasa Securities has already provided around Rs 1 billion in margin loans to clients and plans to increase its margin lending portfolio to Rs 3 billion. The company charges around 1 percent monthly interest on margin loans, with some flexibility for clients taking loans for longer periods.

The expansion of margin trading is expected to diversify brokerage companies’ income sources. Currently, most brokers generate more than 95 percent of their revenue from transaction commissions. Income from interest on margin loans could provide an additional and more stable revenue stream.

Market participants believe that the growth of margin trading, along with possible expansion of facilities such as short selling, intraday trading, and participation of non-resident Nepalis in the secondary market, could increase liquidity and trading activity.

However, analysts have also warned that margin trading carries higher risks during market downturns. While borrowed funds can increase investors’ purchasing capacity during rising markets, losses can also increase if share prices decline. Therefore, effective risk management will remain crucial as margin trading expands in Nepal’s stock market.