Thursday, July 21, 2016

Brokers' commission slashed

Kathmandu, July 20: The Security Board of Nepal (SEBON) Wednesday directed Nepal Stock Exchange (NEPSE) to reduce the stock brokers' commission on securities transaction at the earliest.
The capital market regulator has set the commission of stock brokers to 0.6 per cent from current 1 per cent for the transaction of securities up to Rs. 50,000.
The brokers' service charge for Rs. 50,000 to Rs. 500,000 will be 0.55 per cent while they can charge 0.5 per cent commission for transaction from Rs. 500,000 to Rs. 2 million.
Brokers have been charging 0.9 per cent service charge for Rs. 50,000 to Rs. 500,000 transaction and 0.8 per cent for Rs. 500,000 to Rs. 1 million transaction.
Similarly, SEBON has set 0.45 commission for above Rs. 2 million to Rs. 10 million transaction and 0.4 per cent for any transaction above Rs. 10 million.
The commission rate for the securities transaction above Rs. 1 million is 0.7 per cent now.
According to a press statement issued by the SEBON, the Ministry of Finance has approved the proposal to reduce the broker's commission.

SEBON spokesperson Niraj Giri said that as the number of transaction and amount of securities had been ever increasing, it was pertinent to decrease broker's commission in order to make the market investor friendly. 

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