New Stock Broker Association Nepal Submits Memorandum to SEBON on Licensing Procedure Stoppage; SEBON Boss Hamal Assures Support

The New Stock Brokers Association Nepal has submitted a memorandum to the Chairman of the Securities Board of Nepal (SEBON), requesting the lifting of the temporary ban on licensing procedures for new brokers.

Members of the New Stock Broker Association Nepal met with SEBON Chairman Ramesh Kumar Hamal at SEBON's Khumaltar-based office on Sunday to present the memorandum.

The memorandum highlights that the decision by the Finance Committee on Jestha 29, 2080, to indefinitely halt all pending licensing procedures, contradicts the Supreme Court's decision on Chaitra 26, 2079.

The letter emphasizes the significant financial impact caused by the Finance Committee's decision. It mentions that Rs. 14 crores have been submitted to the government as revenue in the process of seeking SEBON's approval and membership for new broker licenses. Additionally, 43 companies have employed 500 employees, Rs. 40 crores have been spent on infrastructure setup, and the 43 companies are collectively incurring an average loss of Rs. 4 crores monthly.

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The memorandum requests SEBON to direct the Nepal Stock Exchange (NEPSE) to proceed with all pending licensing procedures. It states that SEBON is an independent regulatory body and not obligated to abide by the Finance Committee's decision. Therefore, SEBON is urged to carry out all due licensing procedures.

During the meeting, Chairman Hamal expressed SEBON's unwavering support for the New Stock Brokers Association Nepal and encouraged them to continue their fight against the injustice. He stated that all procedures regarding new brokerage licenses and subsequent approvals have been carried out legitimately.

A Finance Committee meeting is scheduled for Tuesday, Ashad 05, 2080, at 8:00 am in the Secretariat premises of the Federal Parliament. Chairman Hamal mentioned that the matter will be discussed during the meeting, and the New Stock Brokers Association Nepal will have SEBON's support.

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