SEBON amends Securities Businessperson Regulation; sets min paid up capital & requirements for broker companies
- ShareSansar, May 19, 2017 on Featured , Latest , Stock Market
Securities Board of Nepal (SEBON) has made first amendment to the Securities Businessperson (Stock Broker, Dealer & Market Maker) Regulation, 2064 after the approval from Government of Nepal.
The new amendments have set various criteria and requirements for broker companies. Now, broker companies should have a minimum paid up capital of Rs 2 crore (increased 10 folds from current Rs 20 lakhs), and they should take approval from the Board to open new branches outside Kathmandu. Likewise, the Board has also made it mandatory for broker companies to have 5 staffs in the main office with minimum educational qualifications in the field of Finance, Economics, Management, Accounts or Law.
With the new reforms, SEBON expects to better manage securities trading and minimize business operations risks among brokerage companies.