Nov Tue 2020 09:08:29
Investors are currently paying 0.4 to 0.6 percent commission. They are demanding 0.25 percent reduction.
Investors are demanding reduction of broker commission saying that broker commission has not decreased even when the second trading of the share market is fully online.
The demand for reduction of broker commission has been increasing for a long time and as soon as online trading started, the demand for reduction of commission has increased again.
Before the lockout, they had to work from the broker's office or when the investor reached the broker's office, their expenses increased.
Investors have been demanding reduction of broker commission due to the fact that they do not have to go to the bank carrying checks and pay clearing fees now that online transactions have started to be fully online.
Currently, investors have to pay commission to brokers, Cebon, Nepse and CDSC. Investors are also demanding a reduction in Cebon's cassation. It has been demanded to reduce the commission saying that its cost will decrease after Nepse becomes technology friendly.
Radha Pokhrel, president of the Nepal Capital Market Investors Association, says broker commission should be reduced immediately as investors trade online from home.
The task force formed under the coordination of Deputy Governor of NRB Shivraj Shrestha had also suggested to reduce the broker commission. That suggestion has not yet been implemented.
Securities brokers have been saying that the commission cannot be reduced by looking at the transaction amount of a few days.
Securities brokers say it is important to look at how long-term trading works, rather than looking at size.
In order to reduce the commission of brokers, the demand of brokers is to be determined by looking at the average turnover of 1 year or 6 months and how much brokers have earned.
If the investors get 15 or 20 percent of their investment, there will be no problem in reducing the commission, said Bharat Ranabhat, president of the Brokers Association.