Suspension of Broker License has Resulted in the Freezing of a Capital of Around Rs. 12 Arba; Another Supreme Court Hearing to be Held Today

In the seven months prior, one company applied for a stock dealer license, while 45 companies applied for stock broker licenses. Yet, all of the procedures had been put on hold following the Supreme Court's directive. Seven months later, the suspension of the broker license has resulted in the freezing of a capital of around Rs. 12 Arba.

The Securities Market Operation Regulations 2064 and the Securities Dealers Regulations 2064 revised by SEBON begin the process of awarding new licenses. The Securities Board released a notice on Ashwin 2, 2079 with a 30-day deadline in order to carry it out. As a result, 45 companies submitted applications for stock broker licenses, while one company submitted an application for a stock dealer license.

The Supreme Court issued a brief interim ruling on Kartik 4 to maintain the current process while it heard a petition challenging the new license distribution procedure of the Stock Exchange, Commodity Exchange, and Stock Broker. 

While hearing a lawsuit challenging the procedure of introducing a new stock exchange and brokers, Judge Til Prasad Shrestha issued a temporary injunction. He demanded that the modified regulations not be put into effect right away and filed a writ on Kartik 4 with the Supreme Court.  While the hearing on the writ was moved several times, today there is another hearing to solve the matter related to suspension of broker license. The case will be led by Hon'ble judges, Anil Kumar Sinha and Sushmalata Mathema. 

In accordance with the updated regulations, for obtaining a broker license the paid-up capital of fully operational securities brokers has been determined to be Rs. 60 crores, the paid-up capital of limited trading securities brokers is Rs. 20 crores, and the paid-up capital of the securities dealer is Rs. 1.50 arba.

List of Companies awaiting license: