The association is submitting the memorandum against the decision of SEBON of increasing the capital of broker companies without consulting the stakeholders.
Recently, SEBON has announced of implementing open entry and open exit in stock brokerage firms. The memorandum will ask SEBON to postpone the implementation. As per the association, the required minimum capital and model for brokerage companies is inappropriate for the business in the existing condition.
The association concludes that the current Nepalese stock market is immature for open entry and open exit policy. Moreover, they accused the board of trying to sabotage the brokerage firms by increasing the capital requirement by 10 folds.
The memorandum will give insights to concerned authorities about the constraints of the policy in the current scenario. The association will submit the memorandum to SBEON, Ministry of Finance, Office of Prime Minister and Finance Committee of Parliament.
If the authorities do not address the issue, the association is planning to take strong steps against the SBEON direction which may include halting stock trading.
