By A Staff Reporter
Kathmandu, Feb.1: The Securities Board of Nepal (SEBON) clarified on Sunday that the share brokers should not ask any cash from the investors who put order for the purchase of securities.
There were rumours in the market that the brokers should secure about 25 per cent of the estimated cost of the securities being purchased from the investors buying the shares in cash in advance, this is not true, said SEBON in a statement on Sunday.
Some media had published the news about such information.
Stating that the rumours had drawn its attention, the capital market regulator said that it had implemented a provision to receive the payment from the investors in margin cash and cheque so that the brokers could pay the seller of the securities in time.
Earlier this week, SEBON had implemented a ‘T plus two’ policy in clearing the payment of securities transaction. It means the payments of the purchased shares should be cleared within the two days from the buying.
However, according to some investors, the brokers were not following the new provision. As a result, the board had issued a circular directing the share brokers to clear the payment in time.
“The board had issued the circular so that the investors receive their due payment of securities transaction in time,” it said in the statement.
Spokesperson of SEBON Niraj Giri said that to make the T plus two provision more effective, the regulator had decided to integrate the securities transaction with the bank account and depository participant.