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