KATHMANDU: Development banks have asked the government to pave the way for them to get a stock broker licenses.

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 today by the Association.

The Government of Nepal on the recommendation of the SEBON in line with Clause 62 of the Securities Act, 2063 can allow banks and financial institutions to provide brokerage services through their subsidiary companies.

Likewise, the Securities Businessperson (stockbroker and securities dealer) Rules, 2008, formulated by the SEBON to implement the same act, has allowed a subsidiary company has 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 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 BS 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, deposit of Rs 445 billion have been mobilized and Rs 383 billion loans has been disbursed to over 300 thousand clients till the end of the last fiscal year.