Investors want brokerage commission reduced further

Published On: October 13, 2017 12:30 AM NPT By: Republica | @RepublicaNepal

KATHMANDU, Oct 13: Stock investors have demanded further reduction in brokerage commission.

Speaking at an interaction organized by the Securities Board of Nepal (Sebon) in Kathmandu on Thursday on the occasion of World Investor Week, leaders of various organizations of stock investors urged the Sebon to lower the brokerage commission.

“Though the Sebon recently reduced the brokerage commission, it is still high. This should be lowered further to bring more investments in the market,” said Nawaraj Subedi, chairperson of Nepal Capital Market Investors' Association, said in the interaction.

He suggested to the Sebon to keep brokerage commission between 0.15 percent and 0.25 percent.

The Sebon recently lowered the brokerage commissions following complaints from different quarters. Currently, brokerage firms are charging commission ranging from a minimum of 0.4 percent to a maximum of 0.6 percent of the transaction amount.

Subedi also urged one and all to bring fully automated online trading of securities into operation immediately to attract Non-Resident Nepali (NRN) investors into the stock market.

The association has also demanded that the Sebon launch an investigation into the property of officials of brokerage firms, CDS and Clearing Ltd, Nepal Stock Exchange Commission and Sebon to discourage insider trading in the market.

Also speaking at the interaction, Uttam Aryal, chairperson of Share Investors Forum, said that the capital gains tax (CGT) should be waived off for stock investment of more than one year to encourage long-term investment in the market.

Similarly, Sebon Chairman Rewat Bahadur Karki said that the capital market regulator has always prioritized protection of the interest of the stock market investors. He also said that the brokerage firms will start providing margin trading service immediately after the Tihar festival.

Presenting a paper on the Sebon's works, Nawaraj Adhikari, a director of the capital market regulator, urged investors to be cautious and make informed decision in the market rather than making investment based on rumors.