SEBON Chairman Hamal Accuses 50 Brokers of Consuming Up to 70% Profit

Chairman Ramesh Kumar Hamal of the Securities Board of Nepal (SEBON) has alleged that a group of 50 brokers has taken away as much as 70% of the profit. Making his claims during a Finance Committee meeting at the Parliament, Chairman Hamal asserted that he has met the investors' demands over the past 15 years.

According to Chairman Hamal, the long-standing requests of the capital market investors for an open broker system and licenses for subsidiary companies of banks have finally been fulfilled. He emphasized that this achievement marks the first time in Nepal when three types of broker services have been officially licensed.

In addition, Chairman Hamal referenced the Auditor General's report, which indicated that when the broker licenses were distributed, the state provided protection to 50 brokers. He went on to assert that these brokers managed to accumulate a staggering 70% of the overall profits.

Quoting the Office of the Auditor General's report, Chairman Hamal further claimed that the top 10 brokers alone accounted for up to 88% of the total income.

Chairman Hamal's revelations have raised significant concerns about the fairness and transparency of the brokerage system. The allegations against the 50 brokers, along with the concentration of profits among a few top brokers, highlight the need for regulatory scrutiny and measures to ensure a level playing field in the market.

Addressing the meeting, SEBON Chairman Hamal, in line with his past assurance to the New Stock Brokers Association Nepal, also advocated that the Finance Committee's decision must be rectified, as it is in the best interest of the capital market.