How did the broker houses turnover turn out to be in the bearish market of FY 2074/75? Vision Securities attains its vision to be at the top

This year has been a lot of ups and down to investors. The market trend has been out of any normal investor’s expectations. The hope of bullish trend lasts for a while and the bearish trend seems nowhere to end. Besides investors, the year has been full of anticipation, new responsibilities and major competition to even the broker houses. Upcoming year will be undoubtedly a new roadway to the brokers in Nepal. The broker houses will now facilitate online trading to the investors. Besides, the broker houses will further enhance their operation through the establishment of branches outside Nepal. More than that, a major pressure will be seen from the banking side when banks will initiate broker operation.

Although throughout last fiscal year of 2074/75, the local bourse was seen in a bearish trend, some of the brokers have been able to grab a commendable commission. Here are the list of 50 brokers and their performance throughout the year.

Throughout the FY 2074/75, the total amount of buy order and sell order was worth Rs 120.07 arba and Rs 120.09 arba respectively. The total amount was Rs 240.36 arba in all 50 broker houses. The sum of net commission of all fifty broker houses amounted to Rs 81.83 crores. The broker commission is ranged from 0.4 to 0.6% where an average of 0.5% has been taken for calculation purpose in the table. Out of gross commission, 20% is charged by NEPSE while 15% is paid to government as TDS. The remaining portion after deducting these obligations is the net commission of broker house.

In the fiscal year of 2074/75, Vision Securities Private Limited (Broker no 34) with its corporate office at Laxmi Plaza, Ramshah Path has earned the highest commission of 4.29 crores. The same broker has the highest transaction amount worth Rs 12.61 arba. Similarly, Online Securities Private Limited (Broker no 49) with corporate office at Putalisadak has the second highest net commission worth Rs 4.13 crores. The same broker has the highest amount of buy transaction worth Rs 6.19 arba. Finally, Naasa Securities Company Limited (Broker no 58) is in the third position with a net commission of Rs 3.61 crore. There are 3 broker companies with a net commission above Rs 3 crores, 5 broker houses with net commission above Rs 2 crores, 31 broker companies with net commission above 1 crore and 9 broker companies with net commission below Rs 1 crore.

SEBON had implemented the provision for broker houses to reach a minimum paid up capital of Rs 2 crore. The upcoming days are of essence as the broker houses are required to market themselves among a newer segment of online traders. Similarly, with banks taking broker services, it is further to see how the broker companies will react to this event. Will there be cases as brokers being acquired by banks?  How will broker houses provide more professional services and trade in a larger scale in the upcoming days? The major challenge of broker houses remains to pull in the investors from rural areas, bring a completely new segment of online traders into the market and assist the current investors with lack of computer skills in online trading. As of now, the broker houses are constantly busy providing username, passwords, updating KYC forms of the investors.

What is your opinion on the broker houses performances? Which broker house do you prefer for your service? Please write down in the comment section below.