Finance Committee, SEBON to discuss granting new broker licence

KATHMANDU: The Finance Committee under the House of Representatives has called a meeting to discuss granting new broker licences. The committee called the meeting within a week of the directive it issued to stop the procedure to issue new broker licences after the new stock brokers' association and investors put pressure. The committee will discuss procedures and standards adopted for issuing new brokers' licences with the Securities Board of Nepal (SEBON), on Tuesday. Chairman of the Finance Committee, Santosh Chalise, has called the meeting after there was a massive protest through various media and social networks saying that the Finance Committee has stopped the new broker's licence process in the interests of some individuals. The protest has caused obstacles to market expansion. "Regarding the opening of new brokers' licence, a decision will be taken in the interest of common investors," said a source from Finance Committee. According to the source, the committee will not proceed with probing SEBON's weakness in issuing new brokers' licence. Finance Committee Chair Chalise asserted that he had directed to stop the process of new brokers' licence due to pressure from some lawmakers in the committee. He also assured that the process for granting new licences will be opened in the upcoming meeting. In a meeting with a team led by new stock brokers' association coordinator, Sagar Dhakal, the committee members said the decision to stop the broker's license was wrong and that they will hold a meeting immediately to open the way for distribution. According to legal experts, the directive issued by the Finance Committee to stop the new brokers' licence by ignoring the decision of the Supreme Court is a serious offence of law. According to a report, Finance Committee member Metmani Chaudhary has been putting pressure on Chairman Chalise and others saying that the new licence distribution process should be stopped immediately, contrary to the decision of the apex court. Prior to this, MP Chaudhary was a member of a study sub-committee on capital market formed by the Finance Committee under the leadership of Ram Kumari Jhakri. At that time, Chaudhary and others were accused of preparing a report for the benefit of old stock brokers. Meanwhile, MP Chaudhary is said to be demanding formation of a sub-committee to prepare a report. However, Finance Committee Chair Chalise has been ignoring the pressure put on him. In a meeting with a team led by Dhakal, HoR member Chaudhary had said there was no need for new stock brokers in the country mentioning that SEBON should not approve new licences without investigation. READ ALSO:

• Minister Mahat apprises Finance Committee of govt's priority in budget
• HoR Finance Committee discusses country's economy, new stock exchange licence
• SEJON ex-president Sapkota's 'Sharepur' released
• 28th AGM of SBAN: Sapkota elected president