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SEBON to Approve Brokers' Branch Expansion

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SEBON to Approve Brokers' Branch Expansion
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January 8: Security Board of Nepal (SEBON) is preparing to give branch (remote work extension) expansion approval to securities brokers. According to SEBON, it is permitting branch expansion so that to minimize the risk of the securities brokers and to give easy service to the investors. Issuing a statement, SEBON said that the permission will be granted for the branch expansion as soon as Nepal Stock Exchange Limited (NEPSE) provides its suggestion and recommendation regarding the matter. Earlier, SEBON during a meeting of NEPSE, CDS and Clearing Limited and representatives of stock brokers held on January 1 had asked to submit the proposal of required groundwork for the purpose.

NEPSE had sent a correspondence including the list of brokers willing to expand branches in various parts of the country as per the recommendation of Stock Broker Association for approval to SEBON. However, the board has demanded suggestions from NEPSE regarding the clarity of infrastructures needed. The board also returned the correspondence which included the list of branches selected by the borkers citing the insufficiency of documents.

Regarding the expansion of the branches, the board has stressed on the capital, necessary physical infrastructure, risk and human resource management of the brokers.

 

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