KATHMANDU, Dec 26: The Securities Board of Nepal (Sebon) has revised the commission rate of stock brokers by up to 60 percent, attributing to a reduction in the operation costs of the brokerage companies due to an increasing use of online transactions.
Issuing a press statement on Friday, Sebon asserted that out of the total transactions in the secondary market, more than 85 percent is being carried out via online trading platforms. Similarly, the sector regulator has also attributed to a notable rise in the daily transaction volume for revising the rate of brokers’ commissions.
In the revised rate, a brokerage company can take 0.4 percent commission in transaction amount of up to Rs 50,000. The rate on transaction threshold between Rs 50,000 and Rs 500,000 has been fixed at 0.37 percent. An investor needs to pay 0.34 percent commission for a transaction between Rs 500,000 and Rs 2 million and 0.3 percent for transaction between Rs 2 million and Rs 10 million. For all transactions above Rs 10 million, the investors need to pay a service charge of 0.27 percent to the brokerage company.
In the case of government bonds, investors need to pay a commission of up to 0.1 percent. Similarly, the maximum threshold has been fixed at 0.15 percent for the mutual fund scheme and other types of capital market instruments.
Sebon has claimed it has revised the rate of stock brokers’ commission in line with the government policy to boost the stock exchange market through attracting as many investors in the secondary market as possible.