Ongoing Conspiracy To Hinder New Broker Licenses Revealed As Finance Committee Interferes

It has recently come to light that the conspiracy to impede the issuance of broker licenses remains ongoing. The Securities Board of Nepal (SEBON) has granted operational permission to 18 new broker companies in two separate phases, following the fulfilment of infrastructure requirements. 

Subsequently, seven of these companies have also received a letter of intent (LOI) from the Nepal Stock Exchange (NEPSE) to commence operations. These companies have already established their offices and are now preparing for formal operation. However, despite these positive developments, the Finance Committee of the Federal Parliament has instructed a temporary halt to this process. Their rationale is to assess whether the minimum standards have been met or not.

See Finance Committee's press release here: 

It has become evident that certain groups are working behind the scenes to obstruct the progression of this process.

Similarly, the Economic Committee under the House of Representatives has decided to request a response from the SEBON regarding the process of issuing licenses for a new stock exchange and brokers. Santosh Chalise, the Committee's chair, was quoted as saying that SEBON will be called for a deliberation on the matter and to provide their perspective. The government's directive has resulted in the suspension of the license issuance for the new stock exchange. Earlier, the Committee had written to SEBON, seeking information on the license issuance process and the status of the Committee's suggestion report implementation. In yesterday's meeting, lawmakers expressed concerns about the transparency of license issuance and demanded investigations into the matter. Several cases related to the license for the new stock exchange and brokers have been presented to the Finance Committee, suggesting the need for a subcommittee to investigate the issue.

The Chairman of the Securities Board of Nepal (SEBON), Ramesh Kumar Hamal, has vigorously defended the fairness of the broker license distribution process, emphasizing his commitment to transparency and integrity. 

READ MORE: SEBON Chairman Hamal Asserts Fair Distribution of Broker Licenses, Denies Wrongdoing

In the initial phase, SEBON approved licenses for seven brokerage firms, namely Bhole Ganesh Securities Limited, Capital Max Securities Limited, Himalayan Brokerage Company Limited, Sun Securities Private Limited, Miyo Securities Private Limited, Sharepro Securities Private Limited, and Property Wizard Limited, within the limited brokerage category.

In the second phase, the brokerage licenses were offered as follows: