KATHMANDU, SEPTEMBER 8
The government has approved the provision for the addition of stock brokers in the capital market.
A Cabinet meeting held on Tuesday has cleared the way for issuance of new broker licences by revising the regulation as proposed by Securities Board of Nepal (SEBON).
SEBON had decided to open the broker permit system through the amendment to the Securities Businessperson (Stock Broker, Securities Dealer and Market Maker) Regulations, 2008 and proposed it to the Cabinet.
Similarly, the paid-up capital of the securities brokerage service company, which operates as a limited company, has been increased to Rs 150 million, and Rs 500 million for fully functioning securities brokerage services. The paidup capital for securities traders has been set at Rs one billion.
As per the new arrangement, interested companies or organisations can apply for a broker licence in the stock exchange within the first month of every financial year. It has also been decided to have quotas up to 10 per cent of initial public offering (IPO)s for migrant Nepali workers abroad as well as to introduce a new stock exchange market.
A version of this article appears in the print on September 9, 2022 of The Himalayan Times.
