How is broker commission calculated Nepal?

As per the revised rate, the maximum commission has now been reduced by 33 percent ranging from 0.268 to 0.402 percent. This means that when buying and selling shares, the investors will have to be up to 0.402 percent commission. SEBON has determined the broker service fee based on the transaction amount.

The commission has been fixed at 0.40 percent for transactions below Rs 50,000, 0.37 percent for transactions between Rs 50,000 and Rs 5 lakhs, 0.34 percent for transactions between Rs 5 lakhs and Rs 20 lakhs, 0.30 percent for transactions between Rs 20 lakhs and Rs 1 crore and 0.27 percent for transactions above Rs one crore. When the price of a share is high, a number of retail investors may find it difficult to buy that share. By issuing bonus shares, the total number of shares of the firm increases, thus reducing its stock price and making it accessible to more investors.

What is Blank Transfer?

Blank Transferis simply a system of not sending the bought share certificate for name transfer in the company but only recording in the system of Nepse. This mechanism is mainly opted to grab the opportunity provided through the market volatility. As the Name transfer is lengthy process, those who choose to make short term investment prefer to go for Blank Transfer.

But presently, brokers must complete the BT process within T+5. The transactions that executed can be recorded in different way and Nepse has considered all possible retention. The followings are the major key points to be considered.

This is related only with buy of the securities. The buyer may decide to have market benefit either to have capital gains or to minimize the loss. In order to do this s/he may partly send for name transfer or may register it in blank transfer.
If investors register total purchase in blank transfer then they can put share for sale at any time. But in the future date, the investors opt to go for name transfer after registering in the BT; s/he can do so by cancelling the BT and forwarding the shares to the concerned company for name transfer.