Kathmandu. The Securities Board of Nepal (SEBON) is preparing to extend the deadline for maintaining the minimum paid-up capital of the stock brokers.
A meeting of the Board of Directors of the Securities Board has proposed the fifth amendment to the Securities Entrepreneurs (Securities Brokers and Securities Traders) Regulations to extend the time period for maintaining the minimum paid-up capital of brokers. “The board meeting was held on Friday. The meeting has proposed to amend the regulations to give more time to brokers to maintain minimum paid-up capital,” securities board spokesperson Niranjay Ghimire said. After approval from there, the broker will be given more time. ’
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 is the deadline till Mid-July 2082. If the Ministry of Finance approves the proposal of the Securities Board, the next fiscal year 2082. It is said that the rules will be amended to give a deadline to brokers to maintain minimum paid-up capital by Mid-March 83.
The securities board had given time till mid-December 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. Earlier, there was no separate guideline regarding broker mergers.
At present, there are 90 brokers and two stock dealers in operation.
