KATHMANDU, Oct 21: The Securities Board of Nepal (Sebon) has decided to stop accepting new application of merchant banker.
Issuing a statement on Friday, Sebon, the capital market regulator, said that the moratorium on accepting license for the new merchant bank will continue until the Securities Businessperson (merchant banker) Regulations is not amended. The statement also added that the Sebon has taken forward the process to make amendment to the regulations.
At present, there are 19 corporate bodies working as merchant banker while 10 more have applied for license.
The Sebon has said that it would take forward the process of those firms which have already applied for license.
The decision of the capital market regulator comes in the wake of complaints from the merchant bankers about limited business scope for them amid tight competition in the market.
The amendment to the regulations aims to improve service quality of merchant bankers by strengthening infrastructure and reviewing decade old capital requirement.