Brokers may get chance to be DPs

KATHMANDU,JAN 16: 

Securities Board of Nepal (Sebon) is ready to incorporate the brokers demand regarding the requirement to work as depository participants (DPs) for the central depository system.

“The capital market regulator and brokers have reached an understanding to work out ways that brokers can be allowed to work as depository participants without distorting the regulations,” informed director of Sebon Niraj Giri. Sebon has asked the brokers to provide specific reasons, officially, supplying details why the brokerage firms should be granted concession and it will also study the status of brokers on whether they really do not have net worth of Rs 10 million, he explained.

Earlier last week the brokers have submitted a memo to the regulator expressing their displeasure with the regulations regarding the requirements to undertake the role of depository participants.

According to the CDS Regulation-2068, depository participants need to have Rs 10 million net worth to get license. The requirement has limited the brokers’ chance to work as depository participants since most of them do not have that much net worth.

“Even a cursory study of the brokers’ balance sheet show that there are 16 brokers with prescribed net worth,” he pointed out.

Source: THT