Kathmandu. The Stock Brokers Association has submitted a proposal to the Securities Board of Nepal (SEBON) to amend six rules of the Securities Entrepreneurs Regulations.
A delegation led by Association President Sagar Dhakal met SEBON President Santosh Narayan Shrestha on Monday and submitted a proposal to amend the rules of the regulations. The umbrella organization of securities brokers and businessmen has proposed to extend the deadline for maintaining the minimum paid-up capital of the broker till Mid-July 2084. Rule 10 (1) of the current regulations stipulates that the deadline to reach the minimum paid-up capital of the broker has been set by mid-July 2082. The reason for amending the association is that at the time of the commencement of the rule, there was a provision of a minimum of Rs 20 million for the current securities brokers, but the provision and time limit to increase the capital by 10 times is very short and it is almost impossible to increase the capital by July 2082.
Similarly, the association has also proposed to amend Rule 18 (b) of the regulations to establish a director or auditor in the listed organized organization. According to the existing rules, there is a provision to have directors, employees or auditors in the listed organized organization. According to the reason for the amendment, the association has not been able to appoint employees related to the bank in securities brokers and business organizations with investment of class A banks.
The association has proposed to amend Rule 27 (6) to allow securities brokers to provide securities brokerage services to their shareholders, executive chiefs, employees and their single family members. According to the existing rules, securities brokers cannot provide securities brokerage services for their shareholders, executive chiefs, employees and their family members. One of the reasons for amending this rule is that the securities broker should regularly monitor and report securities transactions carried out by his shareholders, executive chiefs, employees and their single family members through a one-door system.
Similarly, the association has proposed to add the provision of Rule 27 (7). In accordance with Rule 27 (6), the association has proposed to add a provision that the securities broker should inform the securities board within seven days of the end of each quarterly period, details of securities purchased or sold in the name of his shareholders, executive heads, employees and their one-time family members.
bylaws amendment
