Himal Press 
KATHMANDU: The Securities Board of Nepal (Sebon) has classified securities brokers into four categories based on their capital, risk-bearing capacity, service diversification, and institutional capabilities.
In a statement issued on Tuesday, the capital market regulator said the Securities Brokerage Business Strengthening Policy, 2026, introduced in line with the government’s Capital Market Strengthening and Revitalization Action Plan, 2026, aims to develop securities brokers into capable market intermediaries with adequate capital, professional management, modern technology, robust risk management and diversified securities-related services.
The policy classifies stock brokers into four categories: stock dealer, full-service stock broker, trading stock broker and specialized stock broker.
It envisions strengthening the securities brokerage business through sound capital, professional governance, modern technology, effective risk management, fair market conduct and strong customer protection.
A new policy introduced by the Sebon classifies stock brokers into four categories: stock dealer, full-service stock broker, trading stock broker and specialized stock broker.
The policy states that separate approvals will be required for activities such as margin trading, securities lending and borrowing, short selling, intraday trading and market making.
Likewise, it includes provisions for customer grievance management, an investor compensation fund and the provision of daily or real-time account information to clients. It also introduces a resolution framework for distressed securities brokerage firms.
The policy requires brokers to maintain minimum paid-up capital as well as risk-based capital adequacy.
In technology and cybersecurity, the policy proposes making digital KYC, multi-factor authentication, order and risk management systems, cybersecurity infrastructure, regular IT audits and penetration testing mandatory.
Sebon has also adopted a policy to facilitate mergers, acquisitions and business integration among securities brokers.
The policy states that existing brokers will be given a transitional period to comply with the new standards. The transition process will include gap assessments, compliance plans, capital and technology upgrades, and reclassification of brokers.
According to Sebon, the policy will be implemented in three phases: institutional strengthening, expansion of market services and development of an integrated securities intermediary system.
