Broker Commission to depreciate by 40%

Ministry of Finance has decided to reduce broker commission by 40 percent. ‘Viewing the increment of   market size and amount being traded compared to the past, broker commission has been deducted.’ said Surya Prasad Acharya, Assistant Secretary of Ministry of Finance. ‘We have reduced the commission by 40%, said Mr. Acharya. Now share investors can pay less commission. As per the new provision a share broker can only charge 0.4 % to 0.6 % broker commission .Earlier the commission started from 0.7 % to 1%. Securities Board of Nepal (SEBON) had amended Securities Businessperson Regulation, 2064 and presented before Ministry of Finance to reduce the broker commission. Once SEBON decides upon the confirmation letter, it will have legal recognition. At present, a broker company charges 1% for Rs 50,000 , 0.9% for Rs 50,000 to Rs 5, 00, 000 , up to 0.8% from Rs 5,00, 000 to Rs 10, 00,000 (0.8 %) and 0.7% above 10, 00, 000. As per the new provision , any broker company can charge 0.6% for Rs 50, 000, 0.5% to Rs 50,000 – Rs 5,00, 000  and 0.4% above Rs 5, 00, 000. Source: ekantipur