WASHINGTON — Market participants are sharply divided on the Municipal Securities ­Rulemaking Board’s draft proposal to prohibit dealers from underwriting new negotiated or competitive bond issues if they served as the issuer’s financial adviser on the transaction.

The board has received some 70 comment letters in response to its August proposal to alter its Rule G-23 in response to a ­request by the Securities and ­Exchange Commission that it ban such role switching. In a May speech, SEC chairman Mary Schapiro called the practice “a classic example of conflict of ­interest.”

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