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Insurance for Brokers Still Uncertain

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Insurance for Brokers Still Uncertain
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April 25: Despite the Securities Act 2006 having provision of insurance for securities brokers, no trader has ever purchased any insurance policy till date.

It has been learnt that lack of work procedure to implement the Act has hindered the security traders to purchase insurance policies. The annual report of the Office of the Attorney General (OAG) mentions this problem every year, but due to the lack of work procedure, the Act is yet to be implemented for the welfare of the security traders.

According to Neeraj Giri, spokesperson at the Securities Board of Nepal (Sebon), the board is holding discussings to amend the Act. He further said that it has been difficult to implement the Act as there is no ‘insurance product’ with insurance companies for security traders.

Meanwhile, Raju Raman Paudel, executive director at the Insurance Board says, the insurance companies can introduce new policies as per the demand. According to Section 5 of the Act, the security traders should be categorized according to the work performance. However, the board is yet to categorize security traders of the country.

“It would be unfair if the board categorizes the traders, who are licensed by the board itself. Also, there have been problems to implement the Act due to some technical difficulties,” Giri said.

 

 

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