However, against the popular belief, these companies have not been able to mark their presence in the stock market. Their transaction amount could not even meet that of average broker companies operating in the market.
In the latest lot, SEBON approved 13 subsidiary companies of banks for securities brokerage. Nabil Stock Dealer, Himalayan Securities, K.B.L Securities, NIMB Stock Markets, Sanima Securities, JBNL Securities, CBIL Securities, Machhapuchchhre Securities, Garima Securities, Prabhu Stock Market, RBB Securities and Sunrise Securities obtained brokerage license from SEBON.
In the last four days, average transaction of Rs 19.11 billion took place in the market. Broker companies carry out both selling and buying which means they recorded average transaction of Rs 38.22 billion in a single day.
Meanwhile, banks’ subsidiary companies could not carryout even one percent of total transaction recorded in the last four days of trading. Among them, Nabil Stock Dealer carried out the highest transaction worth Rs 374.2 million which is only 0.98 percent of average transaction amount.
This is a huge failure for the subsidiary companies of banks. As per an employee of banks’ established subsidiary companies, due to rigidity in the limit provided to stock investors, these companies could not make significant impact in the stock market.
Normally, broker companies allow investors to buy stock four times the amount loaded in TMS. Moreover, few brokers even give ‘unlimited buy’ options to some regular and loyal customers. However, such facilities could be given from subsidiary broker companies which have restricted their growth.
