July 21: Ministry of Finance has finally provided approval for deduction of commission rate to share broker companies by nearly 40 percent in average. “Securities Board of Nepal (SEBON) had submitted the proposal nearly 18 months ago. The Ministry has finally given the approval after conducting long study on the proposal,” said Niraj Giri, Executive Director of SEBON.

“We got the approval on Wednesday after sending the proposal long time ago. The deducted commission rate will be implemented from Thursday,” he added. Stakeholders expressed that the deduction of share broker commission will reduce the cost that will attract investors in the market. “Deduction of commission is a positive part for investors. It will increase investment, trading amount and market index,” said share investor Ambika Poudel.

“Although deduction in broker commission rate will lead to decrease in income of the brokers, it will have positive effect in the market,” said Anjan Shrestha, Former Chairman of Broker Association. He informed that presently 10 broker companies occupy 70 percent of total trading. He also opined that brokers will engage in healthy competition of increasing share transactions in a bid to increase income after deduction of commission rate.

Now onwards, share trading worth Rs 50,000 will be levied 0.6 percent broker commission which was 1 percent earlier. Similarly, share trading worth Rs 50,000 to 500,000 will be levied 0.55 percent commission from earlier 0.9 percent.

Likewise, trading worth Rs 500,000 to Rs 2 million will be levied 0.5 percent which was 0.8 percent earlier. Broker commission for share trading worth of Rs 2 million to Rs 10 million has also been deducted to 0.45 percent from 0.7 percent. Meanwhile, broker commission of 0.4 percent will be levied on share transaction worth above 10 million. According to a higher source of Finance Ministry, the ministry has already correspondence SEBON on Wednesday regarding the deduction of broker commission. As per a source at SEBON, board of directors meeting of the regulator body will endorse the deduction rate and correspondence with the broker companies on Wednesday.