The Securities Board of Nepal (Sebon) has issued Letters of Intent (LOIs) for the license of securities traders (securities brokers and securities dealers) to 16 brokerage firms. According to Sebon Spokesperson Muktinath Shrestha, 16 of the 45 companies that applied for the license were issued LoIs as decided by the Sebon board meeting on Monday. “The board issued LoI to 16 firms after the completion of the evaluation of their applications,” said Shrestha. The firms that have received the LOI will get the license after they ready their infrastructure as prescribed by the Sebon. The board has issued LoI to subsidiary companies of seven commercial banks - Nabil Bank, Nepal Investment Mega Bank, Citizens Bank, Kumari Bank, NMB Bank, Rastriya Banijya Bank and Sanima Bank to operate stock brokerage transactions. Among them, Nabil Bank has received an LOI in the name of Nabil Securities Limited to work as a securities dealer.

Similarly, Himalayan Brokerage Company, Index Securities, Sun Securities, Capital Max Securities, Bhole Ganesh Securities, Infinity Securities, Akash Bhairav Securities, SPSS Securities and Elite Stock House have also been issued LoI for brokerage transactions. This is the first time in over a decade that Sebon is going to issue stock broking licenses.

Meanwhile, Sebon has formed an evaluation committee for the issuance of licenses for commodities exchanges. The five-member committee is headed by Phanindra Gautam, Joint Secretary at Ministry of Law, Justice, and Parliamentary Affairs and has Ritesh Kumar Shakya, Joint Secretary at Ministry of Finance, Mukunda Kumar Chhetri, Executive Director at Nepal Rastra Bank, Muktinath Shrestha, Executive Director at Sebon, and Deepa Dahal, Deputy Executive Director at Sebon as members. Sebon is preparing to evaluate the applications of four companies for commodities exchange licenses. Nepal Multi Commodities Exchange, Himalayan Commodities and Derivative Exchange, Multi Derivative Exchange, and Multi Assets and Derivative Exchange have applied for the license. Sebon plans to issue licenses for two commodities exchanges.