SEBON Announces Major Amendments to Brokerage Commissions and Regulations

A number of significant changes to the Securities Dealers (Securities Brokers and Securities Dealers) Regulations, 2064 have been announced by the Securities Board of Nepal (SEBON). The changes, which are intended to improve investor benefits, were made public in response to SEBON's recent decision to lower broker and SEBON commissions. The Ministry of Finance still needs to approve this move.

The following are the salient features of the amendments:

1. Changes to Schedule 14:

The commission rates for stocks brokerage services have been updated and replaced in Schedule-14's original Clause 1.

The following service fees will be assessed by securities brokers for any transaction involving the purchase and sale of shares:

(a) On transactions up to Rs.50,000/-: 0.36 percent
(b) On transactions above Rs. 50,000/- up to Rs.5,00,000/-: 0.33 percent
(c) On transactions above Rs. 5,00,000/- up to Rs. 20,00,000/-: 0.31 percent
(d) On transactions above Rs. 20,00,000/- up to Rs.1,00,00,000/-: 0.27 percent
(e) On any transaction above Rs. 1,00,00,000/-: 0.24 percent