SEBON extends deadline for brokers to meet Capital requirements

The Securities Board of Nepal (SEBON) is preparing to extend the deadline for brokerage firms to increase their paid-up capital requirements. SEBON has sent a proposal to the Ministry of Finance to amend the Securities Business Rules, 2007. The proposal suggests extending the deadline until the end of Chaitra (April 2026), giving brokers more time to meet the required capital.

Currently, brokers are required to have a paid-up capital of NPR 20 crore by end of Asar 2082 (mid-July 2025). SEBON had instructed brokers to meet this capital requirement within three years, starting from September 2022, when new licenses were issued. However, many brokers still haven’t met the target.

As per the existing rules, brokers must meet the capital requirements by the end of Asar 2082. But with the extension, they now have additional time until Chaitra 2082 (April 2026) to reach the required capital.

Around 60% of existing brokers still fall short of the required capital, and 21 brokers have submitted plans for mergers, bonus issues, and rights offerings to meet the target. Most brokers have chosen the merger route to increase their capital.

On the other hand, new brokers who were licensed recently have already met the increased capital requirements when they were granted licenses.

In short, the extension gives more time for existing brokers to meet the capital requirements through mergers or other capital-raising methods.