SEBON admonishes NEPSE on expanding broker services ; Also aims to establish company specializing in DP services
Securities Board of Nepal (SEBON) has admonished Nepal Stock Exchange Ltd. (NEPSE) for planning, unilaterally, to allow brokers to open branches outside Kathmandu Valley. On Magh 12, NEPSE had laid out plan on its web page for allowing brokers to expand their services outside Kathmandu Valley. The noticed was taken off the webpage after few hours of posting. The officials from NEPSE clarified that the notice was published mistakenly while still in draft phase.
SEBON has directed NEPSE to get necessary approval from the board before making decision on expanding services relating to secondary market beyond Kathmandu valley. Furthermore, SEBON has asked NEPSE to form a committee comprising of concerned stakeholders to take decisions on ways to expand secondary market. The committee would decide if the infrastructure of current brokers meet the requirement to expand their business or new broker license would needed to be issued.
SEBON has laid out plan to establish a company dedicated to provide Depository Participant (DP) services only. Such company would have higher paid up capital and would be technologically advance to provide services all over Nepal, if necessary. As per the laid out guidelines, minimum of 10 brokers can establish such company.
