The paid-up capital of a share broker company is being increased by 10 times, including license and service charges

Jul Sun 2022 02:03:03

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The paid-up capital of a share broker company is being increased by 10 times, including license and service charges

Kathmandu. The paid up capital of share broker companies will be increased by 10 times. The Nepal Stock Exchange (NEPSE) is preparing to increase the paid-up capital of 50 broker companies. The Nepal Securities Board (NSB) had amended the Securities Brokers, Securities Traders and Market Manufacturers Regulations, 2064 BS to increase the paid up capital of broker companies to Rs. Preparations are underway to increase the existing paid-up capital from Rs 20 million to Rs 200 million.

At present, Nepse is in the process of issuing licenses to new broker companies. Along with preparing to bring in new companies, Nepse has suggested to the Ministry of Finance and the Securities and Exchange Board to increase the capital of the old broker companies as well.

Nepse is preparing to invite new broker companies accordingly by formulating a procedure for distribution of licenses. For this, Nepse has also prepared a draft of 'Sifari Selection Procedure for Broker Business License, 2079'. According to the procedure, Nepse will set the paid-up capital of new companies at Rs 200 million and license fee at Rs 2.5 million.

A new official of Nepse said that the new companies will have higher paid-up capital than the old broker companies and it has been recommended to increase the old ones as well. At present, 50 broker companies have to pay Rs 10,000 annually to Nepse for service fee. As the fee has been increased for the new company, the old company will also be increased, said a Nepse source.