The Securities Board of Nepal (SEBON) has proposed introducing intraday trading in Nepal’s capital market in phases, opening the possibility of buying and selling eligible shares within the same trading day.

SEBON published the “Concept Paper on Implementation of Intraday Trading of Securities in Nepal, 2083” on September 24 and invited stakeholders to submit feedback on the proposed framework. The concept paper is intended to establish the policy, legal, regulatory and technical groundwork before intraday trading is introduced.

Under the proposed initial model, investors would follow a “Buy First, Sell Later” approach. This means shares must first be purchased before being sold again within the same trading day.

SEBON has proposed considering a “Sell First, Buy Later” model only after sufficient infrastructure for securities lending and borrowing and covered short selling is developed.

The regulator does not plan to introduce intraday trading across the entire market immediately. The initial phase would cover a limited number of securities that meet criteria related to regular trading activity, sufficient liquidity and comparatively lower risks of market abuse.

The proposed framework also includes eligibility criteria for investors and securities, broker operating procedures, risk disclosures, margin and risk-management requirements, market surveillance and technology infrastructure.

SEBON plans to conduct testing, pilot programs and readiness assessments before gradually expanding intraday trading based on the results and associated risk assessments. Investor protection, risk-based regulation, real-time monitoring and transparent market operations have been identified as key priorities.

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 follows the government's Capital Market Strengthening and Revival Action Plan, 2083, issued by the Ministry of Finance on September 14, as well as SEBON’s policy for the current fiscal year.

For now, the framework remains a proposal under consultation. SEBON has invited stakeholders to provide suggestions before the necessary legal, regulatory and technical arrangements are finalized.