Kathmandu. The Securities Board of Nepal (SEBI) has given time to 23 broker companies that have not paid-up capital to raise capital by mid-March.

Issuing the Securities Entrepreneurs (Securities Brokers and Securities Traders) (Sixth Amendment) Rules, 2082, the Securities Board of Nepal has extended the deadline for providing capital to brokers by nine months.

By amending Rule 10 of the Securities Traders (Securities Brokers and Securities Traders) Rules, 2064, the restrictive phrase of Sub-rule 910 of Rule 10 of the ‘Original Regulations’ has been replaced with the words ‘Mid-April, 2082 BS’.

The board had demanded an extension of nine months to extend the time limit for the broker’s capital by amending the rules. The board has implemented the regulations after the Finance Ministry approved it. According to the board, the capital of 23 is yet to reach. Abc Securities, Aran Securities, Asian Securities, Creative Securities, Crystal Kanchenjunga Securities, Dibya Securities, Investment Management Nepal, Kalika Securities, Malla and Malla Stock Broking, Market Securities, Midas Stock Broking and Nepal Stock House have not received capital.

Similarly, Opal Securities Investment, Pragyan Securities, Sagarmatha Securities, Secured Securities, Sewa Securities, Silpa Securities, South Asian Bull, Sri Hari Securities, Sumeru Securities, Sweta Securities and Trishul Securities and Investment Company. The capital of these companies is less than Rs 20 crore. Most of the 23 companies have a broker’s capital of less than Rs 10 crore.

The Board had made the fifth amendment to the Securities Entrepreneurs (Securities Brokers and Securities Traders) Regulations, 2064 BS on September 29, 2019, fixing the paid-up of the broker company. According to Schedule 9 of the regulations, the paid-up capital of a securities broker should be Rs 200 million, the paid-up capital of a full-functioning securities broker should be Rs 600 million and the paid-up capital of a securities trader should be Rs 1.5 billion. According to the rules issued by the board, all brokers who have reached the capital prescribed by the board will be able to trade margins.

Rule 27 of the original rules has been amended. Clause (c) of Rule 27, (10) of the original Rules has been replaced by clause (c) of Sub-rule (10). (c) The securities broker who acts pursuant to clause (a) may purchase or sell securities in the name of the concerned customer as per the order of the customer, perform the functions of the deposit member in accordance with the Central Deposit Service Rules of the prevailing securities, carry out the work relating to margin transactions and the rafsaf member of securities.