New Stock Broker Association Nepal Dispatches Letter to Finance Committee and SEBON Ruing Indefinite Halt on Licensing Procedures

The New Stock Broker Association Nepal has 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.  

In a letter to SEBON, the New Stock Broker Association stated that as sanctioned by the Supreme Court on Chaitra 26, 2079 procedures to attain new brokerage licenses have been carried hanceforth. 

However, the decision of the Finance Committee made amidst a meeting on Monday, has put an indefinite stoppage on all due licensing procedures citing that the 24-member committee will further evaluate whether or not the license awardees have met specified criteria. 

In the letter in questioning, the New Stock Broker Association has requested that as processes as of today have been conducted legitimately by the companies which have received LOI and subsequent final approval from SEBON after fulfilling infrastructural pre-requisite followed by preliminary approval from NEPSE; to lift the ban. 

A request to lift the temporary stoppage to carry forth all due procedures with NEPSE for commencing operation as new brokerage houses has been made to SEBON. 

See letter here:  

In the same manner, in another detailed letter addressing the Finance Committee the Durbarmarg-based New Stock Broker Association Nepal has requested the committee to revoke the decision to suspend all due licensing procedures. 

In the letter, the New Stock Broker Association have provided a statistical analysis to further strengthen their case in point highlighting that the advent of new brokers is in the best interest of the capital market and the investors. 

The letter seeks from the Finance Ministry to repeal the earlier decision and allow the companies to conduct all due processes to extend their services promptly as new brokerage entities in the Nepali capital market. 

See letter to Finance Committee here: