Nepal Stock Exchange (Nepse) and CDS and Clearing Ltd (CDSC) have started to homework to provide brokers licence to commercial banks after receiving the direction from the capital market regulatory authority.
On July 15, Securities Board of Nepal (Sebon) has directed Nepse to provide broker licence to the banks’ subsidiary companies according to the recommendation of a team of experts that was formed by Finance Ministry last year. Last December, a team of experts led by central bank deputy governor Shiva Raj Shrestha had suggested the board that banks should be allowed to establish subsidiary brokerage firms. Following the suggestion from the central bank, the capital market regulator carried out a study to implement the recommendation. The Nepse has also the started the homework to provide the brokers licence to the commercial banks.
The Sebon has also directed Nepse to conduct a study on ways to make stock market circuit breaker more contextual.
According to Sebon, before issuing the broker licence, Nepse needs to determine the number of subsidiary companies of commercial banks, minimum capital of such firms, necessary human resources, physical infrastructure, and their number of branches across the country. Nepse and commercial banks will have to jointly determine financial feasibility before its establishment outside the Valley.
On July 15, Securities Board of Nepal (Sebon) has directed Nepse to provide broker licence to the banks’ subsidiary companies according to the recommendation of a team of experts that was formed by Finance Ministry last year. Last December, a team of experts led by central bank deputy governor Shiva Raj Shrestha had suggested the board that banks should be allowed to establish subsidiary brokerage firms. Following the suggestion from the central bank, the capital market regulator carried out a study to implement the recommendation. The Nepse has also the started the homework to provide the brokers licence to the commercial banks.
The Sebon has also directed Nepse to conduct a study on ways to make stock market circuit breaker more contextual.
According to Sebon, before issuing the broker licence, Nepse needs to determine the number of subsidiary companies of commercial banks, minimum capital of such firms, necessary human resources, physical infrastructure, and their number of branches across the country. Nepse and commercial banks will have to jointly determine financial feasibility before its establishment outside the Valley.
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