Nepal Stock Exchange (NEPSE) is set to issue a directive to all stock brokers, requiring them to adopt a standardized agreement format for investor onboarding. This move comes after it was found that different brokers have been using varying versions of investor agreements, often outdated and inconsistent with existing securities regulations.
According to NEPSE spokesperson Murahari Parajuli, samples collected from several brokerage firms show that many are still using old formats of agreements that do not align with the amended Securities Trading Regulations 2075. Notably, major brokers such as Online Securities (Broker No. 49) and Imperial Securities (Broker No. 45) have been found issuing old contracts. Similarly, Vision Securities (Broker No. 34) has added extra clauses to their agreement, further reflecting inconsistencies across firms.
NEPSE acknowledged that many investors sign documents without reading them, and brokers continue opening accounts regardless. This lack of uniformity can lead to legal ambiguities and investor rights issues.
To address the situation, NEPSE will soon circulate a mandatory uniform agreement format to all brokers to ensure transparency, compliance, and legal clarity in the investor-broker relationship.
