KATHMANDU, May 13: The Stock Brokers Association of Nepal (SBAN) has demanded an investigation saying that there was irregularity in the licensing of new brokers.

The association issued a statement on Friday and claimed that licenses were issued on the basis of financial transactions after revising the regulations several times.

The president of the association, Dharma Raj Sapkota, has warned that a big accident will occur if the political leadership is influenced to give a new brokers’ license.

He said that billions of investments are at risk as currently there is no practice of alternative measures such as official representatives, official agents, sub-brokers, branchless brokerage services, branch expansion, and the use of modern technology, which are in international practice.

Although there is a legal provision that the founders, directors, shareholders, executive heads, employees and auditors of listed companies, securities board, NEPSE, CDSC, broker companies and merchant bank companies are not eligible to be the founder of another broker company, the board hastily issued letters of intent for new licenses in installments which creates suspicion of financial irregularities, according to SBAN.

 
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