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Now ASBA Service at Rs 100

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Now ASBA Service at Rs 100
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April 12: Securities Board of Nepal (SEBON) has made second amendment to Securities Purchase (Public Issue) Related Guideline2073. Under the amended guideline, general investors can get Application Supported by Blocked Amount (ASBA) services by paying Rs 100 surcharge regardless of the invested amount. The board issued the new amendment on April 10. The securities market regulator of the country slashed the service charge after receiving complaints of the service charge being high. Previously, general investors were charged at least Rs 100 to maximum Rs 250 service charge depending on the amount of investment.

“The service charged has been deducted due to the complaints of it being high,” said Neeraj Giri, Spokesperson of the board and Executive Director of Regulation Department. Exemplifying that some banks have given the services free of charge, he said, “If any banks gives the service free of charge, they can do so. However, no BFIs can charge more than 100.” After the amendment, issue manager can charge only Rs 10 as service charge which was previously Rs 15.

According to Spokesperson Giri, a total of 60 percent of the total issuance amount is being collected through ASBA mechanism in a very short period of ASBA implementation. “It shows exciting participation of both investors and BFIs,” Giri added. The amended guidelines also mentioned to expand the area of ASBA mechanism in all 75 districts by bringing state owned Banijya Bank into ASBA. 

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