ShareSansar: In the extremes of the bullish and bearish trend, there is one more party other than the investor who suffers from the market’s trend. The other party is the broker houses. The policies presented by government are defining new horizon to broker houses. It would be fair to say, broker houses have new responsibilities and roles to shape the market from now onwards.
Upcoming year will be undoubtedly a new roadway to the brokers in Nepal. Broker houses have been offering online trading facility to investors. They are putting in consistent effort to open branches outside the valley. The threat of competition is also there from the banks which will be soon provided with brokering licenses.
Throughout the year (i.e. 17th July, 2018 to 17th July, 2019), the market has remained sideways, so some of the brokers have been able to grab a commendable commission. Here are the list of 50 brokers and their performance throughout the year.
Throughout the FY 2075/76, the total amount of both buy order and sell order was worth Rs 1.10 kharba. The total amount was Rs 2.20 kharba in all 50 broker houses. The sum of net commission of all fifty broker houses amounted to Rs 75.12 crores. The broker commission is ranged from 0.4 to 0.6% where an average of 0.5% has been taken for calculation purpose in the table. Out of gross commission, 20% is charged by NEPSE while 15% is paid to government as TDS. The remaining portion after deducting these obligations is the net commission received by the broker house.
In the FY 2075/76, Online Securities Pvt. Limited (Broker no 49) with corporate office at Putali sadak has earned the highest commission of 4.75 crores. The same broker has the highest transaction amount worth Rs 13.96 arba. Similarly, Naasa Securities Private Limited (Broker no 58) with has the second highest net commission worth Rs 4.63 crores. Finally, Vision Securities Company Limited (Broker no 34) is in the third position with a net commission of Rs 4.23 crore. There are 3 broker companies with a net commission above Rs 4 crore, 7 brokers houses with net commission above Rs 2 crore, 25 brokers houses with net commission above Rs 1 crore and remaining 15 broker companies with net commission below Rs 1 crore.
List of Top Buyer Brokers Top 10 Bought Companies (Pic taken from SS Pro)
List of Top Seller Brokers Top 10 Sold Companies (Pic taken from SS Pro)
SEBON had already implemented the provision for broker houses to reach a minimum paid up capital of Rs 2 crore. The upcoming days are of essence as the broker houses are required to market themselves among a newer segment of online traders. Similarly, with banks implementing broker services, it is further to see how the broker companies will react to this event. Will there be cases as brokers being acquired by banks? How will broker houses provide more professional services and trade in a larger scale in the upcoming days? The major challenge of broker houses remains to pull in the investors all over Nepal, bring a completely new segment of online traders into the market and assist the current investors with lack of computer skills in online trading.
What is your opinion on the broker houses performances? Which broker house do you prefer for your service? Please write down in the comment section below.