May 7:  The Securities Board of Nepal (SEBON) has announced its decision to reduce broker commissions by 10%. This decision was made during a meeting of the Board of Directors, according to Mukti Shrestha, the spokesperson for the Securities Board of Nepal. The revised broker commission rate will come into effect from May 14.

SEBON had proposed a 10% reduction in broker commissions, submitting the proposal to the Ministry of Finance for approval on October 18, 2023. Finance Minister Barshaman Pun approved the proposal to decrease brokerage commissions, aligning with SEBON’s recommendation.

Following thorough research and analysis, the Board concluded to lower broker commissions. Former Board Chairman Ramesh Kumar Hamal had advocated for reducing brokerage commissions based on demands from share investors.

The Board has decided to reduce the upper limit from 0.40% to 0.36% and the lower threshold from 0.27% to 0.24%, implementing these changes accordingly. According to current regulations, investments up to Rs 50,000 incur a commission rate of 0.40%, while investments ranging from Rs 50,000 to Rs 500,000 are charged at 0.37%.

Investments from Rs 500,000 to Rs 2,000,000 carry a commission rate of 0.34%. Similarly, for investments ranging from Rs 2,000,000 to Rs 10,000,000, the commission rate is 0.30%, and for investments exceeding Rs 10,000,000, the commission rate is 0.27%.

With the new decision, commissions for investments up to Rs 50,000 will be 0.36%, for investments from Rs 50,000 to Rs 500,000 the commission rate will be 0.33%, and for investments from Rs 500,000 to Rs 2,000,000 the rate will be 0.30%.

For investments from Rs 2,000,000 to Rs 10,000,000, a commission rate of 0.27% will apply, and for investments exceeding Rs 10,000,000, the commission rate will be 0.24%.