SEBON Raises Paid-up capital of Securities Brokers by 10folds

May 19: As per the first amendment of Securities Businessperson Regulation made by Securities board of Nepal (SEBON), securities broker companies are required to increase their paid-up capital by 10 folds to Rs 20 million. Earlier the paid-up capital was Rs 2 million.

The first amendment of the regulation has also set new mechanism for branch expansion of broker companies. According to the amended regulation,  brokers companies are compelled to obtain approval from SEBON before their branch expansion. The regulation authorizes SEBON of setting required infrastructure and other conditions for broker companies as well.

“The amendment has been made to make the services of broker companies nationwide and manageable,” said SEBON. Similarly, as per the amended regulation, the head office of any broker company must be lead by commerce, management, economy, law graduate or a chartered accountant. Moreover, these stock brokers must employ at least five employees including compliance officer and information technology officer in their offices.