SEBON addresses false OTC service charges reported by some media

Securities Board of Nepal (SEBON) has issued a clarification regarding the false Over The Counter (OTC) service charges as reported by some media on Chaitra 7, 2073. Issuing a press statement, the board said that the charges for OTC has already been slashed by up to 90% after implementation of OTC Bylaw, 2065. The new service charges are as follows:

1. 0.20% for transaction amount up to Rs 25,000 (slashed from previous 2%)
2. 0.18% for transaction amount from Rs 25,001 to Rs 50,000 (slashed from previous 1.5%)
3. 0.15% for transaction amount above Rs 50,001 (slashed from previous 1%)

NEPSE has already been implementing this reduced rate for the ongoing OTC transactions, added the statement. According to the OTC Bylaws, shares of non-listed and delisted companies should be traded in the OTC market. NEPSE has asked public companies, delisted firms and state-owned corporations whose shares are not traded on the secondary market to register with the over the counter market (OTC) to allow trade of their shares. Shares can be bought and sold at the OTC market without others finding out the price at which the transaction was done. The OTC market is, therefore, less transparent than exchanges, and are also subject to fewer regulations. Nepse has also been delisting companies that are not active in the stock market.