KATHMANDU: The Finance Committee in the Parliament has ended the uncertainty and dispute related to the issuance of broker’s license and recommended the government to provide the bank’s auxiliary companies the broker’s license.

This recommendation is likely to overcome the dispute that was in the front for more than a year.

Earlier, the committee had stalled the issuance of such license despite the fact that the banks had already opened auxiliary companies to execute the duties as brokers and had even got permission from Nepal Rastra Bank.

The committee had directed NEPSE not to further the license process.

After the postponement of licensing process, the committee had formed a sub-committee to study the matter and provide recommendation in two months.

Ironically, the sub-committee mandated for 2 months came out with the recommendation some 11 months later, that they could be granted permission.

The committee then was skeptical that issuance of broker’s license to the supporting companies of the banks as they could hold insider transaction once they knew the banks were likely to proclaim high profit.

“The banks declare the profit status every year,” said one of the members of the sub-committee under anonymity, “Such prior information with the banks could make the bank directors influence the market unduly.”

However, the sub-committee’s report has denied such possibility; hence, they recommended letting the bank’s auxiliaries to operate with broker’s license.

The investors have welcomed the decision and expected that it will really make the market more vibrant than before.