SEBON proposes stricter rules for margin trading

Kathmandu, Nov. 24

The Securities Board of Nepal (SEBON) has proposed that shares of companies with at least 5 million publicly listed shares, having a net worth greater than the paid-up capital, and distributing dividends in at least two of the last three years will be eligible for a margin trading facility.

In the preliminary draft of the Margin Trading Facility Directive 2082, published on Monday, it also proposed that to be valid for margin trading, the shares must have completed at least two years of listing following an Initial Public Offering (IPO).

The SEBON has published the draft on its website and sought suggestions from the concerned stakeholders within a week.

According to the draft of the directives, securities brokers wishing to provide margin trading facilities must hold a license issued by the SEBON for the same. They must have a paid-up capital of at least Rs. 200 million, membership for clearing and settlement, as well as depository services.

To conduct the margin trading, a securities broker must collect an initial margin equivalent to the specified percentage, calculated on the lower of either the 180-day average price or the market price of the listed organised institution’s shares.  

“The broker must maintain separate records for shares purchased under margin trading and for margin amounts collected from each client. The valuation of shares taken as initial margin and shares purchased under the margin facility must be conducted daily on a mark-to-market basis,” read the draft.

However, additional facilities shall not be granted based on an increase in the share price.

Likewise, considering the client’s risk profile, market conditions, and risks inherent in the shares of listed organised institutions, the securities broker may demand a higher margin than that prescribed by the directives, which is 30-40 per cent.

Throughout the tenure of the margin trading facility, the securities broker must ensure that the investor maintains a margin equivalent to the percentage specified (20-30 per cent), based on market conditions and risk.

As per the prescribed provisions, a securities broker may provide margin trading facilities by using its own funds, by obtaining loans from banks and financial institutions, or by taking unsecured loans from its shareholders or directors.
However, when taking unsecured loans from shareholders or directors, the broker must comply with the provisions of the prevailing company laws.
“The total of loans obtained from commercial banks and unsecured loans taken from shareholders or directors for providing margin trading facilities must not exceed 4.5 times the broker’s net worth,” read the draft.

It has barred the securities broker from using the cash or shares of one client to provide margin trading facilities to another client.

The maximum limit for providing margin trading facilities is up to five times the broker’s certified net worth. It can’t provide margin trading facilities exceeding 20 per cent of its net worth to any single client or to the members of that client’s immediate household.

Published in The Rising Nepal daily on 25 November 2025.

IBN working to change country’s negative image abroad: Gyewali

Kathmandu, Nov. 23

Chief Executive Officer of the Investment Board Nepal (IBN) Sushil Gyewali has said that efforts are being made to improve the negative international image created by the vandalism and damage of business as well as public and private property during the Gen Z protests in September this year.

“The recent events have left investors in a state of ‘wait and see’. So the IBN is actively working to restore investor confidence and revive the investment climate,” he said at a meeting with the Nepal Association of Financial Journalists (NAFIJ) on Sunday.

Despite the crisis, the IBN has continued its work without interruption, which has sent a positive message to investors, he said, and added, “We have made efforts to bring all stakeholders together with the resolve that 'we must rise' and create an atmosphere of trust.”

To minimise the impacts, the board has already held high-level discussions with the private sector, government bodies, and investors.

Despite the challenges, there has been an encouraging increase in investment approvals. In the past, around Rs. 100 billion in investments were approved annually, but in the last fiscal year 2024/25, the Board approved investments amounting to Rs. 256 billion. Gyewali mentioned that an ambitious target of Rs. 700 billion has been set for the current fiscal year.

He also noted that there are currently investment projects worth Rs. 1.6 trillion in the pipeline, which has further boosted optimism. These include future-oriented projects like Information Technology parks, hydrogen energy, and agriculture-solar projects, in addition to traditional hydropower projects.

So far, the board has approved billions of rupees in investments across sectors such as hydropower, cement, tourism, infrastructure, and information technology. The board has also changed its operational approach to ensure a continuous flow of investments.

According to Gyewali, in the past, the government would determine projects and then seek investors, but now the board is encouraging investors to come forward with innovative ideas and proposals. "We have been asking investors, 'What do you want?' This has resulted in projects that align with market demand and the expertise of investors," he added.

He pointed out that the biggest concerns of foreign investors are political instability and policy changes. To address these, the board has amended laws to provide guarantees for the protection of investments.

The board has introduced laws and policies to protect projects from the negative impact of government changes or new laws after an agreement is signed with investors. Gyewali also mentioned that the board's structure, chaired by the Prime Minister, has made it easier to fast-track decisions for large projects and coordinate between various ministries.

The board has worked to reduce bureaucratic red tape and create an environment where investors can receive services under one roof.

Published in The Rising Nepal daily on 24 November 2025.

Pre-Summit event for AI Impact Summit held

Kathmandu, Nov. 21

The Embassy of India in Kathmandu held an event on ‘AI for Inclusive Growth: Building Nepal’s AI Ready Future’ on Friday in partnership with the AI Association of Nepal. The programme has been designated an official pre-Summit event for the AI Impact Summit scheduled in New Delhi on 19–20 February 2026.

In the event inaugurated by Minister for Communication and Information Technology Jagdish Kharel, more than 400 participants attended, representing startups, government agencies, business chambers, the Robotics Association of Nepal, NAS IT, the Fintech Alliance, the AI Association of Nepal, academic institutions, think tanks and media organisations.

Minister Kharel said that the government has given top priority to the development and use of AI and has formulated an AI Policy this year.

Speaking at the event, Ambassador of India to Nepal Naveen Srivastava said that the summit aimed to redirect global discussion towards the impact of artificial intelligence across sectors. The Ambassador encouraged Nepali youth to participate in the Summit’s AI challenges, including AI for All, AI for Her and YUVAi.

A keynote presentation from the CEO of the Digital India Bhashini Division Amitabh Nag highlighted Bhashini’s role in delivering digital public services in India, with demonstrations of various development-focused use cases.

On the occasion, participants discussed the development of Nepal’s AI policy, robotics and AI engagement among young people, and the potential role of AI in a digital public infrastructure framework. Representatives from India shared insights from the country’s AI ecosystem, read the statement.

Applications for the global challenges and the Research Symposium of the AI Impact Summit, to be held in February 2026, can be submitted online.

Published in The Rising Nepal daily on 22 November 2025.

Global Math Debate to be held in January 2026

Kathmandu, Nov. 21

Embark UnMath is introducing the Global Math Debate League (GMDL) in Nepal for the first time, with the event scheduled for January 2026.

The GMDL positions mathematics as a medium for discussion and idea exchange rather than focusing solely on calculations. The programme encourages students to apply mathematical thinking in communication, problem-solving, and daily activities, the company said in a statement on Friday.

According to Divesh Bathija, co-founder of Embark UnMath, the initiative aims to broaden students’ understanding of mathematics through structured debate and inquiry.

More than 5,000 students from schools across Nepal are expected to participate. The competition will consist of three stages: a screening round, regional selection, and a national final.

Britannica Education will serve as the knowledge partner. It provides curriculum-aligned digital tools and professional development for schools, offering resources built on its long-standing knowledge base.

According to the organisers, UnMath School, founded in 2012, works to redefine the learning of mathematics in schools. Embark UnMath extends this work through programmes, including the Global Math Debate League, Math Marathon, and Space Math.

Published in The Rising Nepal daily on 22 November 2025.

Govt should reconsider TJ strategy: AF

Kathmandu, Nov. 21

Citing that the victims of the decade-long armed conflict and the rest of the country are still awaiting truth, justice, and reparations, the Advocacy Forum Nepal (AF) has stated that the interim government must reconsider its strategy regarding transitional justice (TJ).

In its Impunity Report of November 2025, released on Friday, the AF said that as the country marks the 19^th anniversary of the signing of the Comprehensive Peace Agreement, which in November 2006 ended the armed conflict between the security forces and the then Communist Party of Nepal (Maoist), victims and the rest of the country are still waiting for truth, justice, and reparations.

The recent Gen-Z protests signal how much people, and especially the younger generation, want accountability and respect for the rule of law, read the statement.

“Despite strong opposition from victims’ groups and civil society, the interim government has indicated its support for the current TJ commissions by agreeing to the policies governing the funding of these bodies,” read the statement. These commissioners were appointed by the previous government after a flawed selection process, bypassing the victims and undermining a transparent process. According to AF, many of those appointed lack expertise and are reported to be close to the mainstream political parties. 

The interim government, instead of reinitiating the selection process, has approved regulations to govern the commissions’ work and a budget for their activities. “This risks impunity being further entrenched in our country,” said Bikash Basnet, Executive Director of AF.

“Our system is such that impunity is the norm. We had impunity before the armed conflict, during the conflict, and ever since. And if the TJ commissions don’t deliver truth, justice, and reparations, we will continue to have impunity in the future,” he added.

According to him, a well-executed TJ process is essential to correcting the course of Nepal’s democratic journey and preventing the recurrence of violence, as witnessed in the past, including the very recent past.

The new AF report links the lack of TJ to the root causes behind the Gen-Z uprising in early September. It unpacks the interwoven threads between the protests of Gen-Z and those campaigning against past impunity: both are rejections of arbitrary power by elected representatives.

These are demands for measures that ensure transparency and accountability, and in both cases, there’s a rejection of political patronage and capture of public institutions undermining the merit and expertise of individuals serving those public institutions, said the AF.

It said that there are concerns that the commission set up by the interim government to investigate what happened on September 8 and 9 may face the same fate as previous commissions. Although it collects evidence, interviews members of the security forces, political parties, and invites them to give evidence, it analyses the chain of command and the role of security forces, including the Nepal army.

“As seen time and again, the commissions should not be a vehicle to pacify the call for accountability and to entrench impunity. It should contribute to ensuring that no one will remain above the law in the new regime,” read the statement from AF.

The AF report makes a number of recommendations to the interim government, the international community, and to any new TJ bodies set up after a fully consultative process. Chiefly among them are the reconstitution of the TJ bodies after genuine consultation with victims, the vetting of alleged perpetrators, stopping them from leaving the country, establishing a comprehensive policy on reparations, and initiating a public debate around reform of the Nepal Police, Armed Police Force, Nepal Army, bureaucracy, and the judiciary.

Published in The Rising Nepal daily on 22 November 2025.

MCC approves additional $50 mn grant for Nepal

Kathmandu, Nov. 20

The Millennium Challenge Corporation (MCC) has announced an additional grant finance of US$ 50 million for MCC Nepal Compact.

MCC is a United States government agency that provides large-scale assistance to developing countries to promote economic growth and reduce poverty.

The US Embassy in Kathmandu informed in a statement on Wednesday that the Government of Nepal and the US government’s MCC have announced the additional grant which brings the Compact’s total value to US$747 million - US$550 million from the United States and US$197 million from Nepal.

"The added resources will help deliver the Compact’s core objectives, including completing priority electricity transmission infrastructure, strengthening Nepal’s power system, and enabling increased regional power trade," read the statement.

By improving grid reliability and market access, the Compact is expected to support international connectivity and promote American excellence and best practices in energy infrastructure.

According to the Embassy, the compact also expands opportunities for US companies and technology to enter Nepal’s market.

"For decades, our countries have worked together to advance economic growth, energy security, and mutual prosperity. The MCC Nepal Compact continues that record through no-debt, grant-based assistance focused on high-impact infrastructure," reads the statement. 

Published in The Rising Nepal daily on 21 November 2025.

IBN approves investment for Betan Karnali Hydel Project

Kathmandu, Nov. 20

The Investment Board Nepal (IBN) has approved investment for the Betan Karnali Semi-Reservoir Hydropower Project (439 MW) to be developed at an estimated cost of Rs. 93.40 billion.

The meeting held at the Prime Minister's Office (PMO) on Wednesday also decided to form a negotiation committee for the Project Development Agreement (PDA) for the Betan Karnali.

The IBN informed in a statement that the meeting, chaired by Prime Minister and Chairperson of the Board Sushila Karki, also approved the draft generation licence for the Lower Arun Hydropower Project (669 MW) and authorised the CEO of the Investment Board Office to issue the licence.

Similarly, the meeting decided to submit a proposal to the Cabinet seeking approval of the draft of Direct Agreement for the Arun-III Hydropower Project (900 MW), and to extend the survey licence for the West Seti Reservoir Hydropower Project (800 MW).

The Board further decided to authorise the CEO to sign an MoU for the preparation of the Detailed Project Report (DPR) and to issue a survey licence for the Auto Service Eco-Industrial Park Project (estimated cost of Rs. 16 billion). It was submitted as an unsolicited proposal by Blazepic Global Group Ltd., Hong Kong.

Likewise, the meeting approved temporary staffing positions of various services, groups and categories required for the Investment Board Office in the current Fiscal Year 2025/26, and decided to submit the draft amendment to the Public-Private Partnership and Investment Regulations, 2020, to the Cabinet for approval.

The meeting was attended by Finance Minister and Vice-Chair of the Board, Rameshore Prasad Khanal, Minister for of Energy, and Minister for Infrastructure Kul Man Ghising, Minister for Industry Anil Kumar Sinha, Chief Secretary Eak Narayan Aryal, Governor of Nepal Rastra Bank Dr. Bishwo Nath Poudel, Secretary of the PMO Raj Kumar Shrestha, and other senior officials. 

Published in The Rising Nepal daily on 21 November 2025.