Big Steps

The bank has amended the existing legislations and created separate categories for commercial banks and non-commercial banks.

rnrnThe new guidelines which came into effect from February 1, requires new dealers to set aside minimum Rs. 150 mn in capital.

rnrnCommercial banks have to maintain the capital in a separate fund known as Primary Dealer Special Reserve.

rnrnCommercial banks are also required to conduct its primary dealer business in a separate unit and to maintain separate books of accounts in respect of such activities.

rnrnUnder the earlier legislation, commercial banks were required to set up separate companies with a minimum Rs. 150 mn capital.

rnrnTodate, six bank and two non bank dealers have exclusive access to bid at primary auctions.

rnDealers said a number of foreign and local commercial banks have expressed interest to pitch for the new licences.rn