Kathmandu. The Securities Board of Nepal (SEBON) has moved forward with preparations to introduce intraday trading in Nepal’s securities market. The regulator has published the “Concept Paper on Implementation of Intraday Trading of Securities in Nepal, 2083” with the objectives of enhancing market liquidity, improving price discovery and developing modern capital market infrastructure.
SEBON published the concept paper on September 24, 2026, or 8 Ashwin 2083, and has invited feedback and suggestions from investors and other relevant stakeholders as part of a public consultation process. The paper has been prepared in line with the “Capital Market Strengthening and Revival Action Plan, 2083” issued by the Ministry of Finance on Bhadra 29, 2083, as well as the board’s policies for the current fiscal year concerning the effective implementation of margin lending and intraday trading.
Under the proposed framework, intraday trading would not be introduced across the market at once. Instead, SEBON has proposed a phased implementation approach based on the existing market structure, institutional capacity and risk management readiness.
In the initial phase, the regulator has proposed a “Buy First, Sell Later” model, under which investors would first purchase securities and sell them within the same trading day. The “Sell First, Buy Later” model would be considered in a later phase, after adequate infrastructure for Securities Lending and Borrowing and Covered Short Selling has been developed.
During the initial testing phase, only a limited number of securities may be made eligible for intraday trading. The proposed criteria focus on securities that are regularly traded, have sufficient liquidity and carry comparatively lower risks of market abuse. The scope could subsequently be expanded based on experience from the pilot phase and further risk assessment.
Before full implementation, SEBON has proposed establishing the necessary legal and regulatory framework, eligibility criteria for securities, provisions for eligible investors, broker standard operating procedures, risk disclosure mechanisms, margin and risk management systems, market surveillance arrangements and technological infrastructure.
The proposed approach also includes testing, pilot operations and readiness assessments before phased implementation. Investor protection has been placed as a primary consideration, with risk-based regulation, technology-enabled real-time trading and surveillance, and transparent market operations identified as key foundations.
The concept paper was prepared following discussions within a coordination and facilitation committee comprising representatives from SEBON, Nepal Stock Exchange Limited, CDS and Clearing Limited and the Stock Brokers Association of Nepal. The committee conducted the necessary study before preparing the paper.
Meanwhile, SEBON has stated that it is working to finalize the draft regulation on margin lending after incorporating feedback received from stakeholders. The regulator has also been advancing policy and consultation documents related to new market instruments, including margin lending, intraday trading, Securities Lending and Borrowing and short selling.
The publication of the intraday trading concept paper marks a further step in the policy preparation to make Nepal’s secondary securities market more modern, technology-driven and structured. The next stage will involve reviewing stakeholder feedback and refining the proposed framework before moving toward implementation.
