Banks To Receive License To Operate As Stock Broker
July 8, 2020 | Investopaper
Commercial Banks coulg get broker license for trading shares in the secondary market. A sub-committee set up by the Finance Committee of the Federal Parliament to study the capital market suggested giving a broker license to the bank. A final decision will be taken on the basis of the study committee’s suggestion.
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To obtain the broker license, banks have to form a subsidiary company. Currently, subsidiaries of 12 commercial banks have applied to Nepse for broker licenses.
All parties including the regulatory body Nepal Rastra Bank, Securities Board and Nepse have agreed to issue broker license to the bank’s subsidiary. The regulatory bodies have made the legal provisions accordingly. Nepse had also called for applications for this. Meanwhile, the license distribution process was halted after a sub-committee was formed to study the meaning committee of the parliament.
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The sub-committee submitted its report to the Finance Committee on Tuesday. The report suggests that banks will receive the share trading license with various conditions. The report suggests that the bank should have a good corporate governance and working practices.
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