Broker Commission on Share Transaction to Fall by 10 Percent
April 29, 2024 | Investopaper
Finance Minister Barshman Pun has greenlit a significant move to reduce the commission rates levied by the securities board and brokers by 10 percent. This decision marks a noteworthy step towards making stock trading more accessible and cost-effective for investors.
The decision to slash commissions comes after a thorough study led by Executive Director Muktinath Shrestha and his team at the Securities Board of Nepal (SEBON). Their findings highlighted the need for a reduction, suggesting aCom 10 percent cut in the current fixed commission rates. With Finance Minister Pun’s approval, the proposal to lessen broker commissions is on the brink of realization pending the board’s imminent meeting.
At present, 0.40 percent commission fee is taken for transaction up to Rs. 50,000, 0.37 percent for transaction between Rs. 50,000 to Rs. 5 lakh, and 0.34 percent for transaction between Rs. 5 lakh and Rs. 20 lakh. Similarly, commission is 0.30 percent for transaction between Rs. 20 lakh to Rs. 1 crores and 0.27 percent for transaction above Rs. 1 crores.
After the revision, these rates are set to shift to 0.36 percent and 0.243 percent respectively, offering relief to investors across varying transaction. amounts.
