The Central Bank plans to raise the minimum capital requirement for primary dealers by Rs. 50 mn.
Under the existing guidelines, dealers are expected to set aside Rs.
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150 mn in capital.rn
rnThe Central Bank has told primary dealers last Friday that it is keen to raise the bar to Rs. 200 mn by next March.rn
rnThe move has not attracted much opposition from dealers. But dealers prefer if the Central Bank adopted a risk weighted capital requirement instead of the proposed flat increase.
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rn
rnTodate three non-bank and eight bank dealers have exclusive access to bid at primary auctions.rn