Kathmandu. The Securities Board of Nepal (SEBI) has extended the deadline for maintaining the minimum paid-up capital of the stock broker (securities broker).
The Securities Board of Nepal (Sebi) has amended Rule 10 of the Securities Entrepreneurs (Securities Brokers and Securities Traders) Rules, 2064 bs and extended the deadline till Mid-March 2082 to maintain the minimum paid-up capital. Earlier, the minimum paid-up capital had to be maintained till Mid-July 2082.
Through the fourth amendment to the regulations, the minimum paid-up capital of a broker with limited work has been fixed at Rs 200 million and that of a full-functioning broker at Rs 600 million. This minimum paid-up capital was the deadline till Mid-July 2082.
With the Finance Ministry approving the proposal to amend the securities board regulations, the time has now been extended for brokers to maintain minimum paid-up capital till mid-March.
The securities board had given time till mid-January last year to submit a plan to increase the minimum paid-up capital to Rs 200 million. The securities board had issued letters to 38 old brokers to submit capital plans.
Out of these 38, two dozen brokers have not yet maintained the minimum paid-up capital. These brocs had submitted a capital plan to the securities board to go for merger or issue bonus shares and right shares. At the same time, the Securities Board has prepared and implemented the Guidelines related to the merger, merger or acquisition of securities entrepreneurs, 2081.
At present, there are 90 brokers and two stock dealers in operation.
