Lalitpur, Sept 29, 2026 – The Securities Board of Nepal (SEBON) has put into effect the “Securities Broker Business Consolidation Policy, 2083,” to categorize the existing brokers into four categories.
Based on capital, risk-bearing capacity, service diversification and institutional capability, the policy proposes classifying brokers as:
Category “A”: Stock Dealer
Category “B”: Full Service Stock Broker
Category “C”: Trading Stock Broker
Category “D”: Specialized Stock Broker aiming to develop brokers into capable market intermediaries with adequate capital, professional management, modern technology, strong risk management, and a range of regulated securities services.
The move follows Point 3 of the “Capital Market Consolidation and Revival Action Plan, 2083,” issued by the Ministry of Finance on Bhadra 29, 2083. It directs the Board to publicly release a policy for institutional reform and consolidation of the brokerage business without delay.
The policy’s core vision is to develop “strong, institutionalized and competitive securities brokers built on robust capital, professional governance, modern technology, effective risk management, fair market conduct and high-level customer protection.”
Separate approvals. According to new rule, activities such as margin trading, securities settlement and borrowing, short selling, intraday trading and market making will each require separate approval.
Investor protection. The policy also covers customer complaint management, an investor compensation fund, daily or real-time statements for customers, and a Resolution Framework for distressed brokers.
Capital and technology. Brokers must maintain risk-based capital adequacy alongside minimum paid-up capital. Digital KYC, multi-factor authentication, order and risk management systems, a cybersecurity structure, and regular IT audits and penetration testing are proposed as mandatory.
Mergers and transition. The policy also aims to ease mergers, acquisitions and business consolidation among brokers. Existing brokers will get a transition period under the new criteria, with gap assessment, a compliance plan, capital and technology upgrades, and reclassification to move forward first.
The policy will be implemented in three phases: institutional consolidation, expansion of market services, and development of an integrated securities intermediary system.
