"SEBON and NRB coordination needed to provide broker license to banks" - NEPSE

Nepal Stock Exchange (NEPSE) has issued a press statement saying that Securities Board of Nepal (SEBON) and Nepal Rastra Bank (NRB) need to coordinate with each other to further expedite the process of providing stock brokers license to commercial banks. Provision in Banks and Financial Institutions Act 2063 allows banks to perform merchant banking operations. However, point no. 7 in directive No. 20/2073 issued by the central bank bars subsidiaries of commercial banks to perform stock brokerage transactions. Citing the same directive, NEPSE has said that SEBON itself should coordinate with NRB to provide broker license to the commercial banks.