KATHMANDU, Feb 18: The Securities Board of Nepal (SEBON) will be allowing the stockbrokers to open a branch office in the Kathmandu Valley only if they operate at least three branch offices outside the valley.
Enforcing a directive related to opening of branch offices by stockbrokers on Friday, the SEBON has maintained the provision. Through the regulation, stockbrokers have been allowed to open two new branch offices in the remote districts even if their main office is located in the district.
Only 25% of banks' branches to be opened
A stockbroker needs to maintain paid-up capital of Rs 15 million for each of the additional units. Similarly, the net worth of the brokerage should be greater than the overall paid-up capital to be eligible to expand branch offices.
A stockbroker can apply for only one branch office at a time. The regulator provides the deadline of only 15 days to manage the necessary infrastructure to operate each branch.
