Fiscal Nepal
First Business News Portal in English from Nepal
KATHMANDU: The Ministry of Finance has approved the Securities Businessperson (Broker and Securities Dealer) Regulation, 2082 (Sixth Amendment) based on recommendations from the Securities Board of Nepal (SEBON). The approval was made through a ministerial-level decision on Ashad 30, 2082 (corresponding to July 14, 2025).
In a formal letter to SEBON, the Ministry stated, “The proposal to draft the Securities Businessperson (Broker and Securities Dealer) Regulation, 2082 (Sixth Amendment) has been approved as per the decision of the Honorable Deputy Prime Minister and Finance Minister on Ashad 30, 2082.”
Previously, on Ashad 16, the Ministry had directed SEBON to revise and resubmit the proposed amendment, incorporating necessary changes based on contextual needs and rationale. After SEBON submitted the revised draft, the Ministry formally granted its approval.
Key Highlights of the Amendment:
Extended Capital Fulfillment Deadline: Broker companies now have until the end of Chaitra, 2083 (April 13, 2027) to meet the minimum paid-up capital requirement. Previously, the deadline was limited to the end of FY 2081/82.
Relaxation on Share Mortgage Lending: Before the amendment, only brokers with at least NPR 200 million in paid-up capital could offer share-backed loans. The revised rule now allows brokers of all categories to provide such loans to clients, broadening access to securities-backed financing.
IPO Issuance Rights for High-Capital Brokers: Broker companies with over NPR 1 billion in paid-up capital will now be permitted to issue initial public offerings (IPOs), marking a significant policy shift toward capital market liberalization and private-sector participation.
However, for the amended regulation to come into full effect, it must now be passed by a board meeting of SEBON. Only after this formal passage will the new provisions be officially implemented.
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