Kathmandu, January 12
A few months ago, the sub-panel was formed by the Finance Committee to study the capital market and the NBA today again submitted a memorandum asking it to grant banks sharebroker licence. The main argument from the NBA is that given the widespread presence of commercial banks all over the country, providing broker licences to banks would allow more people to participate in the capital market.
The memorandum letter highlights factors such as financial reach, corporate governance, international practice, capacity of banks and their contribution to the economy to support their demand.
“Banks and financial institutions (BFIs) have assured that they will not be involved in insider trading and pointed out that they have always maintained institutional good governance while expanding their business,” stated the memorandum.
The NBA has claimed that it can provide accurate information to the customers or traders, citing that there are skilled employees working in the banks. Similarly, it has said that the banks will open a separate company to provide sharebroker services to clients.
On July 30, the Nepal Stock Exchange (Nepse) had also collected some applications from commercial banks regarding the same but nothing concrete has come out