Finance Committee opens way to issue Broker License to Banks

Sun, Jul 12, 2020 2:33 PM on Latest, NEPSE News, Stock Market,
Finance Co...

The Parliamentary Finance Committee has decided to give the responsibility to the regulatory body regarding the issuance of broker licenses to bank subsidiaries.

Friday's meeting of the Finance Committee under the Federal Parliament House of Representatives passed the report of the sub-committee chaired by MP Ram Kumari Jhankri and gave the responsibility to the regulatory body to decide on the issue.

The report of the sub-committee has been passed with amendments on some issues. Chairman of the committee Krishna Prasad Dahal said that the committee does not have any problem in giving broker licenses to the subsidiaries of banks if they can provide better service than the existing broker companies.

He said that the regulatory body can decide on the issue after answering the questions raised in the report. "We have a clear view, we are not in a dilemma," Dahal said. "We will help if the government works on our recommendation. If the current policies are adequate, permission will be given."

In the proposal of the sub-committee passed by the committee, the requirement of companies working in the field of natural resources to issue the public shares has been maintained.

However, the requirement to be listed in NEPSE has changed. Previously, private companies who took Rs. 50 crores loan had to be public and listed in NEPSE. Now companies with at least 1 Arba of transaction-amount will have to be listed as public in NEPSE.

In the report passed by the committee, it has been mentioned that broker licenses should be given to bank subsidiaries only after addressing the 11 questions posed in the report.