KATHMANDU, May 7:The Securities Board of Nepal (SEBON) is revising the commission rates of stockbrokers effective from May 14.
Mukti Shrestha, executive director of the SEBON, said the regulator’s board meeting held on Sunday, decided to reduce the commission rates of the brokers operating in the secondary market. Earlier, the Ministry of Finance (MoF) two weeks ago gave go ahead to the SEBON to implement the new commission rates of the brokers.
Finance ministry approves SEBON’s proposal to reduce stockbroke...
In the new rule, the sector’s regulator has reduced the commission rates by 10 percent. As of now, investors have been paying the stockbrokers commissions between 0.27 percent and 0.40 percent based on their transaction volume. In the new provision, the lower limit is set at 0.243 percent while the upper limit will be 0.36 percent.
The commission rate for transactions of up to Rs 50,000 will be 0.36 percent; for Rs 50,000-Rs 500,000 will be 0.33 percent; and for Rs 500,000-Rs 2 million will be 0.306 percent. Similarly, the rate of commission for transactions of Rs 2 million-Rs 10 million will be 0.27 percent and for any amount over Rs 10 million will be 0.243 percent.
Investors have long been demanding the government to reduce the commission rates of stock brokers. The MoF approved the SEBON’s plan to reduce commissions of the stockbrokers after around six months of forwarding its proposal to its line ministry.
Prior to this, the SEBON had revised the rate of brokers’ commissions on December 27, 2020.
