New Stock Market Rules

Securities Board of Nepal (SEBON) has announced three new regulations governing the securities market by resolving the dispute among the Board, the Stock Exchange and the Securities Brokers on the proposed transaction fees and commissions.
Effective from November 5, one of the new regulations is related with the brokers, dealers and market makers while the other two are related with the SEBON and Stock Exchange operator.
The major effect of the new rules is reduction in the brokerage commission to between 1 and 0.7 percent of the transaction value. Earlier this rate was between 1 and 1.5 percent. Similarly, the new rules have fixed that the brokers should collect 0.015 percent of the transaction value from the buyers and sellers as a contribution to the SEBON to help the regulator become self-reliant. The implementation of the rules drafted months ago under the new Securities Transactions Act was delayed due to failure to reach an agreement among the stock exchange, SEBON and the brokers on the rate of this contribution to SEBON.
The implementation of the rules has paved the way for Nepal Stock Exchange to go ahead with its plan to add the number of brokers. According to the stock exchange officials, they will start the process immediately after the Tihar festivals to add 27 brokers to the existing number of 23. After the recently introduced floor automation, the trading floor of the stock exchange is said to have a capacity to accommodate 50 brokers in total.