SEBON To Enact Revised Commission Rates for Stockbrokers; Implementation Begins Today

The Securities Board of Nepal (SEBON) is set to implement its revised commission rates for the stockbrokers starting today, May 14, 2081 (Jestha 01, 2081).

This decision follows a recent board meeting convened on the 23rd of Baisakh, during which SEBON resolved to reduce the commission rates for brokers operating within the market. The move comes subsequent to the Ministry of Finance (MoF) granting approval to SEBON two weeks prior to the announcement of the new commission structure. Under the revised regulations, the sector’s regulator has instituted a notable reduction of 10 percent in the commission rates. Previously, investors were subject to paying stockbrokers commissions ranging between 0.27 percent and 0.40 percent, depending on the transaction volume.

In adherence to the previous system, the commission rates for brokerage services in each purchase and sale transaction of shares were structured as follows: (a) 0.40 percent on transactions up to Rs. 50,000/-, (b) 0.37 percent on transactions exceeding Rs. 50,000/- up to Rs. 5 Lakhs, (c) 0.34 percent on transactions exceeding Rs. 5 Lakhs up to Rs. 20 Lakhs, (d) 0.30 percent on transactions exceeding Rs. 20 Lakhs up to Rs. 1 Crore, and (e) 0.27 percent on transactions exceeding Rs. 1 Crore.

With the revised system now in effect, the commission structure stands as follows: (a) 0.36 percent on transactions up to Rs. 50,000/-, (b) 0.33 percent on transactions exceeding Rs. 50,000/- up to Rs. 5 Lakhs, (c) 0.31 percent on transactions exceeding Rs. 5 Lakhs up to Rs. 20 Lakhs, (d) 0.27 percent on transactions exceeding Rs. 20 Lakhs up to Rs. 1 Crore, and (e) 0.24 percent on transactions exceeding Rs. 1 Crore.