Change in Broker Commission: What do stakeholders have to say about it ?

Nepal has one of the highest broker commission in South Asia. At present the broker commission ranges from 0.7% to 1.00%. Still the overall transaction cost to the investors in Nepal is considered very high. Securities Board of Nepal (SEBON) is proposing a change in the current practice of broker commission. SEBON plans to limit the broker commission to a maximum of 1% while investors and broker can bargain to get the best deal within the set limit. This week we have asked investors and broker regarding the proposed change in the broker commission. Rajendra Maharjan Investor I think the decreasing the broker commission will be beneficial for the market and more people will be interested in investing in shares. Sometimes there is no profit because of the 1% broker commission during the buying and selling of the scrips. If the broker commission is lowered than the there will be more investors coming to the secondary market. Ashok Upreti Investor There are two different views regarding this. Some of them say the provision regarding commission that exists now is fine and others say that it should change. I think the broker commission that exists now should be used for now.