New Stock Broker Association Condemns Effort to Malign SC- Sanctioned Provision for New Stock Brokerage Licenses; Affirms Need of Additional Brokerage Houses to Address Market Expansion

The New Stock Broker Association Nepal has taken a firm stance against any and all efforts to malign the new procedures underway to begin the process of awarding new brokerage licenses. 

The New Stock Broker Association issued a press-release today, criticizing the Stock Brokers Association of Nepal for having expressed ill intentions to reinstate syndicate and monopoly with regards to the procedures which are currently being carried forth to issue new broker licenses. 

Referring to an earlier press release issued by the Stock Brokers' Association of Nepal (SBAN) on Baisakh 29, The New Stock Broker Association claimed that the allegations labelled against them and the Supreme Court (SC) sanctioned provisions to award new brokerage licenses were baseless and mere rumour-mongering, which has not just put all involved legal authorities in a bad light but has also risked the investment of 56 lakhs investors in the capital market. 

Further, The New Stock Broker Association forewarned to look for legal remedies if at any instance in the future such actions are repeated. 

While the New Stock Broker Association Nepal expressed its gratitude to the Nepal govt, Office of the Prime Minister, Ministry of Finance, Council of Ministers, SEBON and NEPSE for have come up with initiatives like regulations to award new brokerage license to address the growing demand of the market, it censured the incompetence of existing brokerage houses and their inability to upgrade their service standards even as investors and their investments have grown. 

Similarly, the New Stock Broker Association reaffirmed the need for additional brokerage houses by providing statistical evidence. "After the operation of online trading management system the numbers of Demat account holders has spiked from 3 lakhs to in excess of 56 lakhs. Even in the secondary market the number of investors have swelled from 25,000 in 2068 to more than 20 lakhs. However, there are still 50 brokers." 

Therefore, the New Stock Broker Association Nepal reinstated the need of additional brokers to safeguard public investments and for the expansion of the market while also reminding our democratic structures rooted in free competitive market. 

Earlier, The Securities Market Operation Regulations 2064 and the Securities Dealers Regulations 2064 had been revised by SEBON to begin the process of awarding new licenses. The Securities Board later had released a notice on Ashwin 2, 2079 with a 30-day deadline in order to carry it out. As a result, 45 companies had submitted applications for stock broker licenses, while one company applied for a stock dealer license.

As of today, the number of companies which have been awarded the letter of intent has reached 43. 

14 Additional Companies Receive LOIs; 43 Among 46 Applicants Receive Preliminary Stock Broker License