Securities Board of Nepal (SEBON) is to issue 35 licenses to additional 35 Stockbrokers keeping in view of daily transaction rise in these recent days. Chairman of SEBON- Bhisma Raj Dhungana confirms that SEBON is planning to provide licenses to five brokerage company each from the seven provinces. During this lockdown as many of the people are engaging in the secondary stock market transaction and daily transaction is increasing day by day. There is increase in the numbers of investors outside the Kathmandu valley these days. 50 brokerage firms are currently working in this sector. At the present context brokerage firms have been carrying out the transaction more than 10 billion daily which was only of 2 billion only a year ago.
Central bank of Nepal, through its Monetary policy 2018 has decided to provide the brokerage licenses to the bank. But the same decisions have not been implemented till date. From May 2017, stock brokers are allowed to operate remotely through their branch units so that they can offer their services from outside the Kathmandu. This leads to the diversification of the workload to some extent. Still, we can see some problems such as lack of technology infrastructure with the brokers and investors have also come up with the problems of not being able to conduct the transaction smoothly.
Chairman has confirmed that they have not yet decided about the modality of the new licenses to be issued to stockbrokers. Licenses can be provided to merchant bankers or brokerage firms or commercial banks.