SEBON to revise commission rates of stockbrokers effective May 14

KATHMANDU: The Securities Board of Nepal (SEBON) has announced a revision in the commission rates of stockbrokers, effective from May 14, in a move aimed at enhancing market accessibility and investor confidence.

Mukti Shrestha, the executive director of SEBON, revealed that the decision to revise the commission rates was made during the regulator’s board meeting held on Sunday. This decision comes after receiving approval from the Ministry of Finance (MoF) two weeks ago, signaling a concerted effort between regulatory bodies to streamline market operations.

Under the new rule, SEBON has decided to reduce the commission rates by 10 percent, marking a significant shift in the fee structure that investors have been accustomed to. Presently, investors are subjected to commission rates ranging between 0.27 percent and 0.40 percent, determined by their transaction volume. However, with the revised provision, the lower limit has been set at 0.243 percent, while the upper limit will be capped at 0.36 percent.

The commission rates have been tailored to cater to various transaction volumes. For transactions up to Rs 50,000, the commission rate will stand at 0.36 percent, decreasing gradually to 0.243 percent for transactions exceeding Rs 10 million. This progressive commission structure aims to incentivize investors while ensuring fair and transparent trading practices.

The move comes in response to long-standing demands from investors urging the government to lower the commission rates of stockbrokers. The MoF’s approval of SEBON’s proposal reflects a timely response to address market concerns and foster a conducive trading environment.

This revision marks SEBON’s continued efforts to enhance market dynamics and investor participation. Notably, this isn’t the first time SEBON has addressed commission rates; a similar adjustment was made on December 27, 2020, underlining the regulator’s commitment to adapt to evolving market trends and investor needs.

The revised commission rates are poised to create a more equitable and accessible trading landscape, empowering investors and bolstering confidence in Nepal’s capital markets. As the new rates come into effect, stakeholders anticipate a positive impact on market liquidity and investor sentiment, further propelling the growth trajectory of the country’s financial ecosystem.