KATHMANDU, Sept 24: The Securities Board of Nepal (SEBON) has proposed introducing intraday trading in Nepal’s capital market in phases, opening the gateway for investors to buy and sell eligible securities within the same trading day.
Unveiling the “Concept Paper on Implementation of Intraday Trading of Securities in Nepal, 2026” on Thursday, the SEBON has invited stakeholders to submit their suggestions on the proposed framework.
As of now, there is no such provision that an investor can buy and sell shares of a listed company on the same day. The sector’s regulator has come up to address the demand concerns of the investors, who have long been urging the authority to enforce the policy that is expected to boost the stock exchange market.
Under the proposed initial model, investors would follow a “Buy First, Sell Later” approach, meaning shares must first be purchased before being sold within the same trading day. SEBON has proposed considering a “Sell First, Buy Later” model only after adequate systems for securities lending and borrowing and covered short selling are established.
Understanding Stock Market
The regulator said intraday trading is intended to enhance market liquidity, improve price discovery and support the modernization of Nepal’s capital market infrastructure. The system would initially apply to a limited number of securities that meet criteria related to trading activity, liquidity and market-abuse risks.
The concept paper proposes eligibility criteria for securities and investors, along with requirements covering brokers, margin and risk management, risk disclosure, market surveillance and technology infrastructure.
SEBON has also proposed testing and pilot programs before gradually expanding intraday trading based on their outcomes and associated risk assessments.
According to the regulator, investor protection, risk-based regulation, real-time trading and monitoring, and transparent market operations will remain key priorities under the proposed system.
The concept paper was prepared following discussions and studies involving representatives from SEBON, Nepal Stock Exchange (NEPSE), CDS and Clearing Limited, and the Stock Brokers Association of Nepal.
The initiative is also linked to the Capital Market Strengthening and Revival Action Plan, 2026, issued by the Ministry of Finance on September 14 and SEBON’s policy for the current fiscal year.
SEBON has invited stakeholders to submit their views and suggestions before the proposed framework moves forward.
Meanwhile, the SEBON also published a concept paper on Wednesday requiring the shareholders with a substantial number of shares of companies listed on the NEPSE to provide advance notice before selling a significant portion of their shares. Provided the new rule is implemented, any substantial shareholder of a NEPSE-listed company intending to sell 5 percent or more of their shareholding to notify the concerned company at least 15 days before the proposed sale.
According to SEBON, the advance disclosure mechanism is designed to ensure equal access to information for all investors and help them make informed investment decisions.
The regulator said the mechanism would also allow the market to anticipate potential supply, detect unusual price movements and strengthen surveillance of possible securities-related offences and market abuse.
