Naasa Securities margin lending facility launched
17th February 2026, Kathmandu
The Nepalese capital market has officially entered a new era of sophisticated financial services with the launch of the Naasa Securities margin lending facility. As the premier brokerage firm in the country, Naasa Securities Company Limited, which holds broker license number 58, has pioneered the implementation of structured leverage for retail and institutional investors. This development follows the enforcement of the Margin Transaction Facilitation Directive 2082 by the Securities Board of Nepal, which became effective on Falgun 1, 2082. By introducing this facility, Naasa Securities is providing a vital tool for market participants to enhance their purchasing power, allowing them to acquire stocks by paying only a fraction of the total cost upfront while borrowing the remainder from the broker.
Naasa Securities margin lending
The regulatory framework governing this facility, the 2082 Directive, represents a significant modernization of the earlier 2074 guidelines. Under the new rules, only brokerage firms with a minimum paid up capital of 200 million rupees and a proven track record are permitted to offer margin services. Naasa Securities, with its robust capital base and technological infrastructure, was among the first to meet these stringent criteria. The directive mandates a minimum initial margin of 30 percent, meaning that for every 100 rupees of stock purchased, the investor must provide at least 30 rupees from their own funds. Furthermore, a maintenance margin of 20 percent must be upheld at all times to protect the broker from extreme market volatility.
Naasa Securities has structured its margin lending products to cater to a diverse range of trading needs, offering four distinct plans that vary by loan amount and tenure. The facility provides loans ranging from a minimum of 10 lakh rupees to a maximum of 2 crore rupees. These plans are designed for short term tactical exposure, with validity periods of one month, two months, or three months. For a standard 10 lakh rupee product, an investor only needs to deposit 3 lakh rupees as the initial margin. The remaining 7 lakh rupees is provided as a loan by Naasa Securities. The cost of this leverage is transparently priced, with the one month plan carrying a total service charge and interest of 7,000 rupees, which effectively translates to a manageable cost for active traders looking to capitalize on immediate price movements.
The operational efficiency of the Naasa Securities platform is a key differentiator in the market. The company has integrated a swift approval process, often completing margin loan evaluations in under an hour, a significant improvement over traditional bank financed share loans which can take days or weeks. This is facilitated through the Naasa X digital platform, where clients can manage their collateral, monitor their margin levels in real time, and receive automated notifications if their position approaches the maintenance margin threshold. The ability to buy and sell without the traditional hassle of pledging and releasing individual share certificates significantly increases the velocity of trading in the secondary market.
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However, the 2082 Directive also introduces strict eligibility criteria for the stocks that can be traded using margin funds. To prevent excessive speculation in weak or volatile companies, SEBON has ruled that only companies with at least 2.5 million ordinary shares listed on the Nepal Stock Exchange and a net worth higher than their paid up capital are eligible. Furthermore, these companies must have been listed for at least two years and must have reported net profits in at least two of the last three fiscal years. This ensures that the leverage provided by firms like Naasa Securities is channeled into fundamentally sound companies, thereby contributing to the overall stability of the Nepal Stock Exchange.
From a broader economic perspective, the introduction of the Naasa Securities margin lending facility is expected to significantly boost market liquidity. By allowing investors to take larger positions than their cash balance would otherwise permit, the facility increases the daily turnover of the exchange. This is particularly beneficial for small and medium scale investors who may have the market insight but lack the immediate capital to maximize their returns. For the brokerage industry, this marks a shift toward a more service oriented business model, where revenue is generated not just from trading commissions but also from interest income and specialized financial advisory services.
Risk management remains a cornerstone of the Naasa Securities approach. In accordance with the marked to market requirement of the new directive, all margin positions are valued daily based on the prevailing closing prices. If the market value of a client’s portfolio drops such that their equity falls below the 20 percent maintenance margin, Naasa Securities is legally mandated to issue a margin call. If the investor fails to deposit additional funds or collateral within the stipulated timeframe, the broker has the authority to liquidate the shares to recover the outstanding loan. This disciplined approach is essential for preventing the kind of systemic debt crises that can occur when leveraged positions are left unmonitored during market downturns.
In conclusion, the launch of the Naasa Securities margin lending facility in Falgun 2082 is a landmark achievement for the Nepalese financial sector. By aligning with the latest regulatory directives and leveraging its superior technology, Naasa Securities has provided a transparent, efficient, and scalable solution for leveraged trading. As the capital market continues to mature, such innovative products will play a crucial role in attracting a more sophisticated investor base and driving the long term growth of the Nepal Stock Exchange. Investors are encouraged to consult with the professional advisors at Naasa Securities to determine which margin plan best fits their risk profile and investment objectives.
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