Sebon asks government to raise paid up capital for new brokerage firms

KATHMANDU: The Securities Board of Nepal (Sebon) has recommended the Ministry of Finance to raise paid-up capital requirement for new brokerage firms to get a license to Rs 1 billion.

Altogether 50 brokerage firms are currently carrying out stock transactions at the Nepal Stock Exchange (Nepse) and as of today, the paid-up capital requirement for such companies is only Rs 20 million.

Bhisma Raj Dhungana, chairman of Sebon, said they paid-up capital for such firms should be raised while amending the Securities Exchange Regulation 2007. The amendment is being made especially to issue new brokerage licenses.

In case the new regulation is endorsed in its current form, the brokerage companies will have to maintain a paid up capital between Rs 100 million to Rs 1 billion.