KATHMANDU, FEBRUARY 17
Securities broker companies will now only get permission to open branches within the Kathmandu valley after operating at least three branches outside the valley.
Issuing new guidelines regarding the opening of branch offices by security brokerage firms, Securities Board of Nepal (SEBON) has introduced the mandatory provision with an aim to develop and expand the access to the capital market across the country.
Likewise, the branch of the brokerage firm cannot be opened in the district where the head office is located, however in the remote areas, two more branches can be opened, as per the guidelines.Meanwhile, the broker companies have to put the branch into operation within three months after getting the permission.
A broker company should inform SEBON at least seven days before opening the branch office and should apply for opening only one branch at a time along with necessary documents.
The companies have been given 15 days follow through on the mentioned steps to prepare necessary infrastructure and the permission to open the branch will be revoked if the criteria are not meet.
Similarly, the paid-up capital of the company seeking to open a branch has to be maintained at Rs 15 million and its net worth should be more than the paid-up capital.
A version of this article appears in the print on February 18, 2023, of The Himalayan Times.
