SEBON Announces 10% Reduction in Stockbrokers' Commission Rates Effective Jestha 01

The Securities Board of Nepal (SEBON) has announced revisions to the commission rates of stockbrokers, effective from May 14, 2081 (Jestha 01, 2081).

Following a board meeting held on Sunday, the Securities Board of Nepal decided to reduce the commission rates for brokers operating in the secondary market. This decision comes after the Ministry of Finance (MoF) granted approval to SEBON two weeks ago to implement the new commission rates.

Under the revised regulations, the sector’s regulator has lowered the commission rates by 10 percent. Previously, investors were subject to paying stockbrokers commissions ranging between 0.27 percent and 0.40 percent based on their transaction volume. In the updated provision, the lower limit is set at 0.243 percent, while the upper limit will be 0.36 percent.

According to the new structure, the commission rate for transactions up to Rs 50,000 will be 0.36 percent; for transactions between Rs 50,000 and Rs 500,000, it will be 0.33 percent; for transactions between Rs 500,000 and Rs 2 million, it will be 0.306 percent. Similarly, the commission rate for transactions between Rs 2 million and Rs 10 million will be 0.27 percent, and for any amount over Rs 10 million, it will be 0.243 percent.

The move to reduce commission rates comes in response to longstanding demands from investors to lower the fees charged by stockbrokers. The approval from the MoF for SEBON’s plan to reduce broker commissions comes approximately six months after the proposal was forwarded to the ministry.

Prior to this revision, SEBON had last revised the rate of brokers’ commissions on December 27, 2020.