Securities Stock Dealer Operation Guidelines

 Securities Stock Dealer Operation Guidelines, 2077 has been approved by NEPSE and will be applicable from Bhadra 1, 2077.

NEPSE will provide the list of tradable securities on its website for a stock dealer. The companies whose securities will be qualified for trading should:

a) Be profitable over the past three years.
b) Have a minimum of 10,000 investors.
c) Have a paid-up capital higher than 20 crores.
d) Must have traded on 80% of the trading days in the last year.

While NEPSE will update the list every year, a stock dealer should present a list of the qualifying companies that it wishes to trade.

A stock dealer cannot trade the security that is not mentioned in its list with its system. Nevertheless, it can carry out such transactions via a broker company.

A stock dealer can trade securities in a single day whose monetary amount should not be higher than 60% of its net worth. It should also keep Rs. 50 lakhs cash or bank guarantee in NEPSE in order to trade listed securities for commercial purposes. A stock dealer can then freely trade securities amounting to 25 times this amount kept as collateral.

Moreover, a stock dealer cannot trade more than 50,000 units at once of companies with paid-up capital higher than 8 Arba. This limit is 40,000 units for companies with paid-up capital between 5 to 8 Arba and 30,000 units for companies having lesser than 5 Arba and higher than 2 Arba as paid-up capital.

Similarly, companies with paid-up capital between 1 and 2 Arba can only have 25,000 units traded. This limit is 20,000 for companies with paid-up capital between 50 crores to 1 Arba and 10,000 for companies with paid-up capital between 20 crores to 50 crores.

Meanwhile, a minimum of 1000 units can be traded at once for all the companies.