SEBON looking to reduce brokers’ commission; maximum rate of commission to be reduced to 0.4% from existing 0.6%

Securities Exchange Board of Nepal (SEBON) is in the final stages of discussion to reduce the Brokers’ Commission.

The commission which was earlier set between the ranges of 0.4% to 0.6%, will be reduced to 0.3% to 0.4% as per the officials at SEBON. Further, he added that the lower limit hasn’t been finalized yet but the upper limit would not cross 0.4%.

This decision comes after the board received numerous requests from the investors to reconsider the brokers’ commission.

More than 2 years ago, the board had reduced the commission. The commission percent was based on the value of the transaction. Transactions below Rs.50 Thousand had a commission of 0.6%, those above Rs.50 Thousand but below Rs.5 Lakhs attracted commission of 0.55%. Similarly, transactions between Rs.5 Lakhs and Rs.20 Lakhs had a commission of 0.5% and those above Rs.20 Lakhs but below Rs.1 Crore was set at 0.45%. Finally, transactions above Rs.1 Crore attracted minimum commission of 0.4%.

However, the similar break up of commission at the reduced range of 0.3% to 0.4% is yet to be disclosed.