SEBON tells Nepse to initiate process of issuing broker licence to commercial banks

Kathmandu, January 2

The Securities Board of Nepal (SEBON), the secondary market regulator, has directed Nepal Stock Exchange (Nepse) and CDS and Clearing Limited to conduct a study on issuing broker license to commercial banks as per the recommendation made by a team of experts formed by the Ministry of Finance.

A team of experts led by Nepal Rastra Bank Deputy Governor Shiva Raj Shrestha had suggested that banks should be allowed to establish subsidiary brokerage firms. “Nepse and CDS should carry out a study to implement the recommendation,” said a statement issued by SEBON today.

The SEBON has also directed Nepse to conduct a study on ways to make stock market circuit breaker more contextual. It has also asked Nepse to come up with measures to discourage activities that affect the capital market and lead to fluctuations in the stock index.