Finance Committee to Discuss Resumption of Broker Licensing; New Stock Broker Association Urges NEPSE CEO to Cancel Blocking Directive
After succumbing to public pressure, the Finance Committee has scheduled a meeting for next Tuesday to resume the process of issuing new broker licenses. The committee's decision to halt the license distribution process had faced strong opposition from new brokers and investors through various media channels and social networks.
During a meeting at the finance committee office in Singhdarbar, Chairman Santosh Chalise assured the New Stock Broker Association Nepal that the license distribution process would recommence in the upcoming meeting on Tuesday. Chalise acknowledged that the decision to suspend the process was influenced by pressure from certain individuals but emphasized that it would be promptly resolved. He stated, "I have called for a meeting of the committee to address this issue on Tuesday, which will pave the way for the distribution of new broker licenses."
The New Stock Brokers Association Nepal, represented by a team led by coordinator Sagar Dhakal, has issued an ultimatum to Chairman Chalise, demanding another meeting within a week to reinstate the license process. Dhakal questioned the basis for the committee's decision to halt the distribution when the Supreme Court had already cleared the legal pathway for it. He criticized the committee's actions as irresponsible and illegal, driven by the interests of a select few.
In addition, the association approached another member of the Finance Committee, Padam Giri, expressing concerns about his alleged involvement in the incident. MP Giri assured the team that he was not in favor of any syndicate and pledged immediate facilitation of the license distribution process. The association had previously submitted a memorandum to the finance committee, accusing them of attempting to create a cartel by halting the distribution.
Furthermore, the New Stock Brokers Association Nepal submitted a memorandum to Krishna Bahadur Karki, the Chief Executive Officer of the Nepal Stock Exchange (NEPSE), urging the cancellation of the directive issued by the Finance Committee to block new broker licenses. The association met with CEO Karki and presented a 16-point memorandum outlining concerns regarding the licensing of new securities brokers and traders.
The memorandum highlighted the Finance Committee's violation of the Supreme Court's decision and Article 128 of the Constitution. It called for necessary measures to be taken to annul the prejudicial directive that hampers the significant progress of Nepal's capital market.
The association emphasized that the Finance Committee's actions have obstructed the development and expansion of the capital market by perpetuating syndicates among limited traders and maintaining a monopolistic situation. They urged swift notification of the trading management system connection to alleviate these challenges and foster growth in the country's capital market.
Earlier, The New Stock Broker Association Nepal had written to the Securities Board of Nepal (SEBON) and Finance Committee under the House of Representatives (HoR) expressing their dissatisfaction with regard to the decision to halt new broker license procedures temporarily.
Similarly, The New Stock Broker Association Nepal had also written to Prime Minister Pushpa Kamal Dahal 'Prachanda' and the Ministry of Finance on Wednesday, requesting to revoke the indefinite suspension on all licensing procedures that were underway.
