Sebon grants licence to five more companies

Securities Board of Nepal (Sebon) today granted license to five more brokers.
Including the new five companies, the number of total new brokerage firms has reached 14, the capital market regulator said, adding that Sunny Securities, South Asian Bulls, Lynch Stock Market, Imperial Securities Company and Creative Securities Company got the licence today under the Securities Businessperson (Stock Broker, Dealer and Market Maker) Regulation, 2007.
The board has granted the licence after they fulfilled the criterion like recruitment of human resources and infrastructure requirements as directed by the regulation.
The regulator will issue licence to all the companies that have applied once they complete all the mandatory instructions according to the regulation.
Earlier, the board had issued licence to Dakshinkali Investment and Securities, Kalika Securities, Kohinoor Investment and Securities, Swarnalaxmi Securities, Dipsikha Dhitopattra Karobar Company, Secured Securities and Vision Securities to operate as share brokers in the Nepali capital market.
The regulator had already granted Letter of Intent (LoI) to 20 aspirant brokerage firms to make the number of total brokers to 50.
Though, the selected brokers still need to be granted membership by the Nepal Stock Exchange to start the operation, they are waiting for the green signal from the Nepse. The stock exchange will have to provide training to the new brokers before letting them start share trading.
The broker selection process that had started some three-and-a-half years ago has finally drawn to an end with Sebon granting license to new brokers for operation.Earlier in 2007, the capital market regulator had decided to add 27 more brokers to the existing 23 brokers to make it a total of 50 brokers as the share market was on a boom. “The limited numbers of brokers was not sufficient to cater to all the investors at the time of boom forcing the regulator to add more brokers.
However, the process was interrupted by Commission for Investigation of Abuse of Authority questioning transparency of the selection process. The process finally resumed in October 2011.

Market rally continues
KATHMANDU: The secondary market continued its rally since the starting of this week. The market today gained a whopping 20 points in a single day's trading pushing the secondary market to 364.4 points. Hydropower subgroup gained 50.91 points followed by others sub group (28.19 points) and banks (23.19 points) forcing the market to use circuit breaker.