KATHMANDU

The decision to reduce broker commissions by the Securities Board of  Nepal has been announced. The board has decided to reduce the commission by approximately 10 to 12 percent overall.

The Board decided to send the decision to the Ministry of Finance for approval, as reported by the Board sources. Previously, the Nepal Stock Exchange Board had reduced broker commissions two and a half years ago. The commission had been reduced from 33 percent to 60 percent for brokers since Poush 2077.

According to the investment providers, they charge a broker commission of 0.40 percent on transactions up to 50,000 rupees. Similarly, for transactions ranging from 50,000 rupees to 5 lakhs, they charge a commission of 0.37 percent. For transactions above 5 lakhs up to 20 lakhs, the commission is 0.34 percent, and for transactions above 20 lakhs up to 1 crore, it is 0.305 percent.

Similarly, a broker commission of 0.27 percent is charged on any business above Rs. 1 crore. In the purchase and sale of government or institutional bonds, a service charge of 0.10 percent is applicable for transactions up to 50,000 rupees, 0.05 percent for transactions up to 5 lakhs, and 0.02 percent for transactions above 50 lakhs.