SEBON Reduces Stock Broker Commission By 33 Percent

December 25, 2020 | Investopaper

Securities Board Of Nepal (SEBON) has reduced the commission charged by stockbroker companies with effect from next Sunday. In a statement issued on Friday, the board said it had reduced the commission rate by 33 percent. At present, stockbrokers have been charging 0.40 percent to 0.6 percent commission from investors while buying and selling shares.

As per the revised rate, the maximum commission has now been reduced by 33 percent ranging from 0.268 to 0.402 percent. This means that when buying and selling shares, the investors will have to be up to 0.402 percent commission. SEBON has determined the broker service fee based on the transaction amount. The commission has been fixed at 0.40 percent for transactions below Rs 50,000, 0.37 percent for transactions between Rs 50,000 and Rs 5 lakhs, 0.34 percent for transactions between Rs 5 lakhs and Rs 20 lakhs, 0.30 percent for transactions between Rs 20 lakhs and Rs 1 crore and 0.27 percent for transactions above Rs one crore.

The Board has stated that the service fee to be charged for the purchase and sale of bonds and institutional bonds issued by the Government of Nepal is 0.10 percent for transactions up to Rs. 500,000. Similarly, the commission has fixed 0.05 percent for transactions between Rs 5 lakhs and Rs 50 lakhs and 0.02 percent for transactions above Rs 50 lakhs.

Investors have been demanding a reduction in broker commissions for a long time, saying the capital market is becoming technology-friendly and the size of transactions has increased significantly. Addressing the same demand, the board has reduced the broker commission.

New Stock Broker Commission In Nepal

Share/Equity

Transaction Amount (Rs.) Broker Commission (%)
Up To 50,000 0.4
50,000-500,000 0.37
500,000-20 Lakhs 0.34
20 Lakhs- 1 Crore 0.3
Above 1 Crore 0.27

Government Bonds, Corporate Bonds/Debenture

Transaction Amount (Rs.) Broker Commission (%)
Up to 5,00,000 Flat Rs 10 or 0.10% (whichever is higher)
500,001 to 50,00,000 0.05%
Above 50,00,000 0.02%

Mutual Funds (Closed-End)

Transaction Amount (Rs.) Broker Commission (%)
Up to 5,00,000 Flat Rs 10 or 0.15% (whichever is higher)
500,001 to 50,00,000 0.12%
Above 50,00,000 0.10%

Suggested Readings:

List of Licensed Stock Brokers In Nepal With TMS URL

Basic Requirements To Start Trading In The Stock Market Of Nepal

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