The Nepal Stock Exchange (NEPSE) has introduced significant amendments to the Securities Dealer (Stock Dealer) Operating Procedure, 2077, aiming to make the capital market more dynamic, organized, and liquid.

Under the revised framework, stock dealers are now allowed to expand their investment scope beyond ordinary shares to include government bonds, mutual funds, and debentures. This change is expected to diversify trading activities and strengthen overall market participation.

The earlier requirement restricting investment only to companies with three consecutive years of profitability has been removed. This opens the door for investment in emerging companies with strong potential.

Similarly, the previous condition requiring at least 80 percent trading-day compliance has been scrapped. However, the rule mandating that companies must be listed for at least six months before investment eligibility remains in place.

On the capital side, NEPSE has increased the minimum paid-up capital requirement for stock dealers from Rs. 20 crore to Rs. 25 crore. In addition, the daily net trading limit has been set at up to 60 percent of net worth.

Procedurally, stock dealers will no longer need prior approval for their investment lists. Instead, they only need to provide notification, a move expected to simplify operations and reduce bureaucratic delays.

According to NEPSE CEO Chudamani Chapagain, these amendments are designed to enhance liquidity in the capital market and strengthen the role of stock dealers in market development.