SEBON Chairman Hamal Hands Over Broker Licenses to Seven Companies; New Era in Stock Market Commences
Tue, May 23, 2023 7:45 PM on Featured,
The Securities Board of Nepal (SEBON) Chairman Ramesh Kumar Hamal handed over broker licences to seven companies.
Today, Mr. Hamal, in the midst of a meeting at SEBON's office in Lalitpur, bestowed brokerage licenses to representatives from the companies that have recently been granted broker licenses.
The seven new companies which can now be operational have received license under the limited working securities category. The limited broker licensee will be limited to only buy/ sell as per customers instructions. In line with SEBON's regulation for the provision of awarding new licenses, there will be three different licenses offered: general securities dealer, full operating securities broker service, and limited working securities broker service.
The seven new companies which can now operate as brokerage houses are as follows:
- Bhole Ganesh Securities Limited
- Capital Max Securities Limited
- Himalayan Brokerage Company Limited
- Sun Securities Private Limited
- Miyo Securities Private Limited
- Sharepro Securities Private Limited
- Property Wizard Limited
Following the development, the syndicate and monopoly of the existing 50 brokers in the Nepali share market has been finally broken as seven new brokerage licenses have been awarded marking the dawn of a new era in the share market.
In the recent past, the share market has done a 360-degree somersault for the good. After the operation of the online trading management system, the number of Demat account holders has spiked from 3 lakhs to in excess of 56 lakhs. Even in the secondary market, the number of investors has swelled from 25,000 in 2068 to more than 20 lakhs. Similarly, according to the latest statistics by the CDSC, even the number of Licensed Depository Participants (DPs) has reached to 83.
Despite a growing market, the number of brokers have remained stagnant at 50.
Additional brokerage houses were required to cope with the growing demand of the market and safeguard the investments of the investors. Therefore, to address the demand of the growing market SEBON carried forth the procedures to award new brokerage licenses.
READ ALSO: 50 Brokers Syndicate Finally Broken; Seven New Brokerage Licenses Awarded
That advent of new brokerage houses will mark the dawn of a new era in the share market as it is beneficial to all concerned parties including the government, share market, old brokers, new brokers, the economy and above all the customers.
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