Kathmandu, July 22

The Securities Board of Nepal (SEBON) has slashed the transaction fee charged in trading of shares in Over-The-Counter (OTC) market by up to 90 per cent.

In Nepal, public companies whose shares are not traded in the secondary market are required to register with the Office of Company Registrar to allow trading of their shares in OTC market.

Considering lukewarm response of investors to OTC market, and recommendations of the Federation of Nepalese Chambers of Commerce and Industry, among other stakeholders, the securities market regulator has reduced transaction charges between range of 85 to 90 per cent.

For transactions of up to Rs 25,000 in the OTC market, the new charge has been slashed by 90 per cent to 0.20 per cent. For transactions of Rs 25,001 to Rs 50,000, the fee has been reduced by 88 per cent to 0.18 per cent. Similarly, for trading of above Rs 50,001, SEBON has cut the fee by 85 per cent to 0.15 per cent.

SEBON has hoped the revised rates will attract more investors to the OTC market and help fuel growth of the overall securities market.