Finally Writ Petition Filed Against Broker License, Stock Exchange & Commodity Exchange Canceled At Supreme Court
Sun, Apr 9, 2023 4:12 PM on Breaking News, Stock Market, Latest,
After six months the ongoing case against the petition challenging the new license distribution procedure of the Stock Exchange, Commodity Exchange, and Stock Broker has been canceled.
The Securities Market Operation Regulations 2064 and the Securities Dealers Regulations 2064 revised by SEBON begin the process of awarding new licenses. The Securities Board released a notice on Ashwin 2, 2079 with a 30-day deadline in order to carry it out. As a result, 45 companies submitted applications for stock broker licenses, while one company submitted an application for a stock dealer license.
The Supreme Court issued a brief interim ruling on Kartik 4 to maintain the current process while it heard a petition challenging the new license distribution procedure of the Stock Exchange, Commodity Exchange, and Stock Broker.
While hearing a lawsuit challenging the procedure of introducing a new stock exchange and brokers, Judge Til Prasad Shrestha issued a temporary injunction. He demanded that the modified regulations not be put into effect right away and filed a writ on Kartik 4 with the Supreme Court.
In the six months prior, one company applied for a stock dealer license, while 45 companies applied for stock broker licenses. Yet, all of the procedures had been put on hold following the Supreme Court's directive. Six months later, the suspension of the broker license resulted in the freezing of capital of around Rs. 12 Arba.
While the hearing on the writ was moved several times, finally today the writ challenging the suspension of broker license has been cancelled at supreme court. The writ was dismissed on Sunday by the joint bench of Hon'ble judges Anil Kumar Sinha and Sushma Lata Mathema.
In accordance with the updated regulations, for obtaining a broker license the paid-up capital of fully operational securities brokers has been determined to be Rs. 60 crores, the paid-up capital of limited trading securities brokers is Rs. 20 crores, and the paid-up capital of the securities dealer is Rs. 1.50 arba.
In a conversation about the writ's dismissal with Ramesh Hamal, Chairman of SEBON, Hamal underlined the writ's cancellation as a favorable outcome since it will generate beneficial results on the share market, which will bring many changes and growth for the market. When asked about the next steps in the broker license application process, Hamal also said that the procedure would proceed once SEBON received the official letter from the Supreme Court regarding the writ cancellation.
