New brokers await Nepse green signal
KATHMANDU, May 23:
Despite Securities Board of Nepal (Sebon) granting license to operate to new stock brokers, the new stock brokers do not seem to be able to start operation any time sooner as Nepal Stock Exchange (Nepse) is yet to give them approval.
“The five of us, who were granted licence last week — have already applied for the membership at Nepse almost a week ago as per the regulations, but Nepse is yet to respond officially,” said managing director of Kohinoor Investment and Securities Bharat Ranabhat.
The brokers can start the operation only after Nepse gives them their unique broker code.
Today, Sebon granted license to Dynamic Money Managers to work as share broker making it to a total of 29 stock brokers in the Nepali capital market.
The regulator of the capital market has on May 11 granted licences to five brokerage firms — Kalika Securities, Swarnalaxmi Securities, Dakshinkali Investment and Securities, Dipshikha Dhitopatra Karobar Company and Kohinoor Investment and Securities.
But Nepse is yet to decide whether to provide training on operation to the new stock brokers collectively after all 28 brokers are granted license or to start training of the ones that received licence.
“It is unfeasible to train the new brokers individually,” an official of Nepse, said, adding that the new brokers have expressed that they can not wait for all the 28 to get license for the training programme to get started, though it will be in the best interest of Nepse to give collective training.
“Nepse is discussing the best measures to accommodate the both parties’ interest,” he added.
The brokers will be trained on existing system not on soon to be launched Central Depository System (CDS) as intended earlier.
The process that started in November 2007 was interrupted by Commission for Investigation of Abuse of Authority (CIAA) in February 2008, as the anti-graft authority halted the process, questioning the transparency.
Finally, after much insistence, the test was conducted last October. Of the 134 examinees that appeared in the exam, Nepse selected the highest scoring 34 candidates and recommended their names to Sebon for the final approval on November 2010.
Sebon has already granted Letter of Intent (LoI) to 15 aspirant brokerage firms and will grant the license after they fulfill the infrastructures requirements.
Back in 2007, Nepse had decided to add 27 more brokers to the current 23 brokers to make the total number to 50. At that time when the secondary market was at its peak the limited numbers of brokers was not sufficient to cater to all the investors but the Nepse has been hovering at around 350 points currents from 1,175 points in August 2008.
Source: THT
Despite Securities Board of Nepal (Sebon) granting license to operate to new stock brokers, the new stock brokers do not seem to be able to start operation any time sooner as Nepal Stock Exchange (Nepse) is yet to give them approval.
“The five of us, who were granted licence last week — have already applied for the membership at Nepse almost a week ago as per the regulations, but Nepse is yet to respond officially,” said managing director of Kohinoor Investment and Securities Bharat Ranabhat.
The brokers can start the operation only after Nepse gives them their unique broker code.
Today, Sebon granted license to Dynamic Money Managers to work as share broker making it to a total of 29 stock brokers in the Nepali capital market.
The regulator of the capital market has on May 11 granted licences to five brokerage firms — Kalika Securities, Swarnalaxmi Securities, Dakshinkali Investment and Securities, Dipshikha Dhitopatra Karobar Company and Kohinoor Investment and Securities.
But Nepse is yet to decide whether to provide training on operation to the new stock brokers collectively after all 28 brokers are granted license or to start training of the ones that received licence.
“It is unfeasible to train the new brokers individually,” an official of Nepse, said, adding that the new brokers have expressed that they can not wait for all the 28 to get license for the training programme to get started, though it will be in the best interest of Nepse to give collective training.
“Nepse is discussing the best measures to accommodate the both parties’ interest,” he added.
The brokers will be trained on existing system not on soon to be launched Central Depository System (CDS) as intended earlier.
The process that started in November 2007 was interrupted by Commission for Investigation of Abuse of Authority (CIAA) in February 2008, as the anti-graft authority halted the process, questioning the transparency.
Finally, after much insistence, the test was conducted last October. Of the 134 examinees that appeared in the exam, Nepse selected the highest scoring 34 candidates and recommended their names to Sebon for the final approval on November 2010.
Sebon has already granted Letter of Intent (LoI) to 15 aspirant brokerage firms and will grant the license after they fulfill the infrastructures requirements.
Back in 2007, Nepse had decided to add 27 more brokers to the current 23 brokers to make the total number to 50. At that time when the secondary market was at its peak the limited numbers of brokers was not sufficient to cater to all the investors but the Nepse has been hovering at around 350 points currents from 1,175 points in August 2008.
Source: THT
