Stock Brokers’ Association, Securities Brokers’ Association sing merger deal

Kathmandu, Nov. 14

A merger agreement has been signed between two broker associations of Nepal - Stock Brokers’ Association and the Securities Brokers’ Association. The agreement was signed by Dharma Raj Sapkota, Chairman of the Stock Brokers’ Association, and Sagar Dhakal, Chairman of the Securities Brokers’ Association.

The merger committees from both associations also played a key role in this agreement. On behalf of the Stock Brokers’ Association, former Chairman Santosh Raj Mainali led the committee as coordinator, with members Madan Poudel and Suyog Adhikari. On behalf of the Securities Brokers’ Association, General Secretary Krishna Giri coordinated the committee, with members Suman Kumar Malla and Sandeep Bikram Rana.

Following the merger, the combined entity will operate under the name Stock Brokers’ Association of Nepal (SBAN).

Speaking on the occasion, Dhakal emphasised the need for unification to address recent discrepancies in the stock market and to foster its development and expansion.

"The polarisation that emerged between new and old securities businesses after the licensing of new securities traders two years ago has come to an end with this historic understanding. This will undoubtedly guide the key stakeholders in a new direction. I firmly believe that this merger will enhance our professionalism and create a united front to protect our rights and interests," he said.

Dhakal also expressed his commitment to work collectively as one organisation, prioritising the growth, expansion, and security of the capital market while safeguarding investors' interests. He noted that the Securities Act, for the first time in approximately 23 years, is being amended, and the merged entity aims to play a significant role in making the law more business- and investor-friendly.

“There are still numerous provisions required to elevate our capital market to international standards, which have not been included in the current draft. Though laws should be amended continuously and regularly, many critical aspects have been overlooked. Hence, we must engage with all stakeholders to push for necessary amendments,” he stated.

Dhakal underscored the urgency of developing essential market infrastructure and investment tools, such as intra-day trading, short selling, equity derivatives and index funds. 

Published in The Rising Nepal daily on 15 November 2024.