First Business News Portal in English from Nepal
KATHMANDU: Development banks have asked the government to pave the way for them to get stockbroker license. The Development Bankers Association has written to the Securities Board of Nepal (SEBON) asking for brokerage service through their subsidiary offices, according to a statement issued by the Association on Wednesday (August 18).
The Government of Nepal on the recommendation of the SEBON can allow banks and financial institutions to provide brokerage service through their subsidiary companies in line with Clause 62 of the Securities Act, 2063.
Likewise, the Securities Businessperson (stockbroker and securities dealer) Rules, 2008, formulated by the SEBON to implement the same act, allows a subsidiary company having a 15 percent ownership of ‘A’ class bank or any of the financial institutions established by a special act to work as the securities brokers by taking a permission from the Board.
Development banks are providing banking services by acquiring ‘B’ class license from Nepal Rastra Bank as per the Companies Act 2006 and Banks and Financial Institutions Act 2017. The average paid-up capital of national-level development banks has exceeded Rs 3.4 billion and they ensure services to around 4.1 million clients through over 1,000 branches.
Likewise, development banks have mobilized deposits of Rs 445 billion while loans of Rs 383 billion have been disbursed to over 300,000 clients till the end of last fiscal year
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