Number of merchant banks to increase; How will it affect the current merchant banks?

After the implementation of C-ASBA, the crowd surrounding the merchant banks has decreased. Despite the decrease in the workload of the merchant banks, three new merchant banks have recently applied in the Securities Board of Nepal (SEBON) regarding permission to establish merchant banks. After the dematerialization of shares started in the Nepalese Stock market, the working area of the merchant banks has decreased day after day. But still 3 more banks have applied for the establishment of merchant banks. As per the information received from SEBON, Kumari Bank, Nepal Bangladesh Bank and Janata Bank have applied for the permission. The establishment of new merchant banks was suspended by SEBON, but when the establishment has been resumed, many companies have approached the board for the permission. Before these banks, many other companies and financial institutions including Century Commercial Bank are already waiting for approval. The application of C-ASBA and the inclination of the Nepalese market towards the online approach has decreased both the work load as well as earnings for the merchants banks. In this situation, the establishment of new merchant banks would mean great competition in the field.