Request to Lift Temporary Suspension on Stock Broker Licensing: Memorandum to Prime Minister and Finance Ministry by New Stock Broker Association Nepal
Thu, Jun 15, 2023 9:30 AM on Latest,
The New Stock Broker Association Nepal has written to Prime Minister Pushpa Kamal Dahal 'Prachanda' and the Ministry of Finance on Wednesday, requesting to revoke the indefinite suspension on all licensing procedures that were underway.
The New Stock Broker Association addressing the Prime Minister state that decision of the Finance Committee under the House of Representatives (HoR) made amidst a meeting on Jestha 29, to suspend all licensing procedures for new brokers is contrary to legitimate decision of the Supreme Court.
"The process to distribute new brokerage licenses had proceeded forth after a long haul of 14 years as per the Open Entry-Open Exit procedure and the experience and qualifications of the applicant companies were factored in as well prior for consideration and approval," the letter mentions addressing the PM as well as the Ministry of Finance.
The memorandum draws on statistical analysis to further highlight the fact that existing 50 brokers are not able to cope up with the demand of the market. "The Demat account holders have exceeded 56 lakhs from only three lakhs prior to the operation of the online Trading Management System (TMS). Similarly, the number of investors in the secondary market in 2068 was only 25,000 which has swelled to 20 lakhs. However, they are still facilitated by 50 brokers which was the case even back in the day."
The decision of the Finance Committee has drawn nation-wide flak and entails massive financial implications for the involved companies.
Ongoing Conspiracy To Hinder New Broker Licenses Revealed As Finance Committee Interferes
See letters here:
