Brokers Association Preparing to Launch Broker Lending Fund
14th December 2025, Kathmandu
The Stock Brokers Association of Nepal (SBAN) is making significant preparations to launch a major initiative for the domestic capital market: the establishment of a Broker Lending Fund.
SBAN Broker Lending Fund
This fund is envisioned as a mechanism to facilitate margin trading and increase liquidity within the secondary market, directly enhancing the purchasing power of investors.
The Association has scheduled its Annual General Meeting (AGM) for January 10 to present proposals detailing the operational procedures and core decisions necessary for the formal implementation of the Broker Lending Fund. The successful approval of these proposals by the AGM will officially clear the pathway for the fund’s operation, marking a vital step in the evolution of brokerage services in Nepal.
Importance of the Broker Lending Fund
The concept of a Broker Lending Fund is not new to global capital markets, but its formal establishment in Nepal through the brokers’ umbrella organization represents a fundamental shift in how margin financing is provided.
Enhancing Liquidity: The primary goal of the fund is to create a pool of capital that member stock brokers can access to provide margin trading facilities to their clients. This direct source of broker-originated lending is expected to be more efficient than the existing methods, which often rely on complex bank financing structures for the end investor.
Increased Purchasing Power: Margin lending allows investors to purchase securities by paying only a fraction of the cost, borrowing the remainder from the broker against the collateral of the purchased shares. The Broker Lending Fund is intended to systematically support this function, which in turn amplifies the purchasing power of investors and can significantly boost trading volumes in the secondary market.
Streamlining Operations: By establishing a centralized fund, the Association is aiming to streamline the financing process for its member brokers, providing a standardized, reliable source of capital for lending. This reduces the administrative burden on individual brokers and ensures a more uniform application of margin rules across the industry.
The formalization of the fund’s operational procedures through the AGM is a necessary step to align the collective interests of the brokers with the regulatory framework set by the Nepal Securities Board (SEBON) and the Nepal Rastra Bank.
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Key Agendas for the AGM
The Annual General Meeting will serve as the highest decision-making forum for the Association, where the leadership will seek approval on the Broker Lending Fund and review the organization’s performance for the past fiscal year.
Broker Lending Fund Proposal: The main agenda item is the discussion and approval of the proposals related to the fund’s operation. This includes the rules for contribution to the fund, the eligibility criteria for brokers to borrow from the fund, the interest rate mechanism, and the risk management protocols designed to safeguard the corpus.
Chairperson’s Annual Report: The AGM will receive and discuss the Chairperson’s Annual Report for Fiscal Year 2025/26. This report provides an overview of the Association’s activities, advocacy efforts, policy suggestions made to regulators, and overall market development initiatives undertaken during the year.
Treasurer’s Annual Report: The meeting will also review and discuss the Treasurer’s Annual Report for Fiscal Year 2025/26. This report offers a detailed account of the Association’s financial activities, including its income, expenditures, and the overall financial health of the organization throughout the fiscal period.
Audited Financial Statements: The members will be presented with the audited financial statements, including the balance sheet and the income and expenditure statement of the Association for the Fiscal Year 2025/26. Formal approval of these audited accounts is a mandatory governance requirement, ensuring transparency and accountability to the members.
Auditor Appointment: Finally, the meeting will address the appointment of an external auditor for the next fiscal year, 2082/83. This includes determining the auditor’s remuneration for the professional services to be rendered.
The AGM is poised to be a pivotal meeting, potentially unlocking a new era of financing mechanisms for Nepal’s secondary stock market through the Broker Lending Fund and solidifying the operational structure of the Stock Brokers Association of Nepal for the coming year.
For More: SBAN Broker Lending Fund
