SEBON issues new directives to merchant bankers that provide corporate advisory service; aims to make service delivery more efficient and client-oriented

Securities Exchange Board of Nepal has made a new legal provision for the merchant bankers that are providing corporate advisory service so as to make their job more efficient and customer-centric.

As per the new provisions, the merchant bankers need to take care of the following issues

*Workplace management: 1000 sq ft of office space (rent agreement of at least 2 years in case of rental property) that is fully equipped with all sort of furniture and communication gears with enough workspace

*Criteria for different employees:

CEO: minimum university postgraduate or CA with a minimum of 3 years of experience

Head of Department: the minimum academic experience of post graduation or CA

Compliance Officer: minimum 1 compliance officer with academic qualification of university graduation or CA

Asset and liability analyst: minimum one officer with CA / financial analyst degree

Fixed asset analyst: minimum 1 analyst with an engineering degree

debenture capital analyst: minimum 1 analyst with university post graduation

Moreover, the merchant bankers will also need to prepare a working procedure regarding the cost of advisory service, types of advisory services requiring discussion in a board, the scope of providing corporate advisory service, Code of ethics for BoDs, CEOs and employees, etc that need to be duly submitted to the board.

(detailed directives)