NASA Securities Plans Rs 3 Billion Financing Push to Expand Margin Trading

NASA Securities Company Limited (Broker No. 58), one of Nepal's largest stock brokerage firms, is moving to significantly expand its margin trading business by securing banking facilities worth Rs 3 billion. The initiative comes after the Securities Board of Nepal (SEBON) introduced the Margin Trading Facility Directive, 2082, which allows licensed brokers to provide loans to investors for purchasing shares using either their own capital or borrowed funds. According to a report by CARE Ratings Nepal, the financing package includes a Rs 11 million long-term term loan for infrastructure development, Rs 659 million in fund-based working capital facilities, a Rs 1.929 billion short-term credit facility primarily earmarked for margin lending, and Rs 401 million in bank guarantee facilities required for settlement and clearing obligations with the Nepal Stock Exchange (NEPSE) and CDS and Clearing Limited. CARE Ratings has assigned the company a CARE-NP A- rating for its long-term facilities and CARE-NP A2+ for its short-term borrowings, indicating an adequate capacity to meet financial obligations and relatively low credit risk, which is expected to help the broker obtain financing at competitive rates. Founded in 2007, NASA Securities currently accounts for around 6.5 percent of total trading volume on NEPSE and operates branch offices in Kathmandu, Birgunj, Pokhara, and Janakpur, serving retail, institutional, and high-net-worth investors. The company is led by Chairman Madan Paudyal and principal promoter Sandeep Jalan, both of whom have decades of experience in Nepal's capital market. The expansion comes at a time when Nepal's securities market is preparing for major reforms, including the introduction of short selling, intraday trading, and greater participation by Non-Resident Nepalis (NRNs). By allocating nearly Rs 2 billion toward margin lending, NASA Securities aims to increase liquidity and trading activity by allowing investors to purchase additional shares against pledged securities or margin deposits. While the strategy offers significant growth opportunities, it also exposes the company to risks associated with market volatility, regulatory changes, and interest rate fluctuations. However, CARE Ratings noted that NASA Securities has established a robust risk management framework supported by its proprietary digital platform, which automates Know Your Customer (KYC), Anti-Money Laundering (AML) compliance, and real-time monitoring of margin limits. If successfully implemented, the financing plan is expected to accelerate the development of Nepal's margin trading market, improve overall market liquidity, and reinforce the evolving role of brokerage firms as providers of both trading and financing services rather than acting solely as intermediaries.