The Finance Ministry on Wednesday gave approval to the Securities Board of Nepal (Sebon) to reduce stockbrokers’ commission by around 40 percent.

After the new provision comes into effect, the brokers can charge 0.4-0.6 percent commission on total trading amount—significantly less than existing commission of 0.7-1 percent.

Amending the Securities Businessperson (Stock Broker, Securities Dealer and Market Maker) Regulations 2008, Sebon had presented the proposal to the ministry for approval some 18 months ago. “We approved the proposal as the trading volume as drastically increased and stockbrokers are making huge money,” said Surya Prasad Acharya, joint secretary at the Finance Ministry.

As per the new rate, brokers can charge 0.6 percent commission on trading amount of up to Rs50,000; 0.5 percent on trading amount of Rs50,000-500,000; and 0.4 percent if the trading amount exceeds Rs500,000.