FAQ

Members

Brokers, Market Makers and dealers are the members of Nepse. Members of Nepse are permitted to act as intermediaries in buying and selling of government bonds and listed corporate securities. At present, there are 49 member brokers and one market maker, who operate on the trading floor as per the Securities Exchange Act, 1983, rules and bye-laws.

Besides this, NEPSE has also granted membership to issue and sales manager securities trader (Dealer). Issue and sales manager works as manager to the issue and underwriter for public issue of securities whereas securities trader (Dealer) works as individual portfolio manager. Previously there were presence of two dealers in the market but currently there is only Citizen Investment Trust which is also not fully functioning as dealer in the market.

At present there are 11 sales and issue manager and one dealer (Secondary market). The tenure of the membership is one year. The license should be renewed within 3 months after the closure of the fiscal year. If not, it can be done within another three months by paying 25% penalty.

Functions of members

Functions that may be carried out by the Stock Broker, Securities Dealer and Market Maker: 

1. The Stock Broker may provide brokering services of purchasing or selling the securities in the name of client only as per the client’s order.

2. The Stock Broker shall not be allowed to carry out other business pursuant to these Regulations other than the business as stock broker. 

3. The Securities Dealer and the Market Maker may carry out the functions as follows:-

(a) To purchase or sell the securities on own account

(b) To quote the buying and selling price of the securities and purchase or sell such securities on own account and act as a market maker,

(c) To carry out the underwriting of the securities as provisioned by the Board.

4. The Stock Broker Company shall not be allowed to make purchase or sale of the securities on its own name or in the name of the Director, Chief Executive, and Representative, employee or any of the members of their respective joint families.

5. The Securities Dealer and the Market Maker shall not be allowed to carry out the trading of the securities issued by itself.

6.The Board under specified terms and provisions may provide license to Securities Dealer and the Market Maker for functioning as the Stock Broker or carrying out any other securities business or may provide license to the Stock Broker to function as Securities Dealer or the Market Maker.

Paid-up Capital (Minimum)

Application fee, license fee and annual fee