September 13: The Securities Board of Nepal (SEBON) is preparing to issue license for a new stock exchange company and brokers within this week. Chairman of the board Ramesh Kumar Hamal informed that the board will seek applications for the new company and broker license within this week.
According to Hamal, the minimum paid-up capital required for the new stock exchange company is Rs 3 billion. Likewise, the capital requirement for new broker license has been fixed between Rs 200 million to Rs 1.5 billion. Brokers will be issued three different types of licenses based on their capital.
As per the new provision, the first kind of brokers providing limited services of stock market transaction require a minimum capital of Rs 200 million to acquire license. Likewise, the brokers providing services like share transaction, depository participant, investment consultancy, investment management and margin business need to have a minimum paid up capital of Rs 600 million.
Similarly, the third type of license will be issued for stock dealers who must maintain a minimum capital of Rs 1.5 billion.
Chairman Hamal informed that the board’s proposal to open broker license every year has been amended. According to Hamal, the board will now issue broker license once in every three years.
“Whoever meets the criteria set by the board can acquire license,” said Hamal. “This will create an opportunity for everyone involved in the stock market,” he added.