Dhaka, Bangladesh (BBN) – The primary dealers (PDs) have planned to take different measures including appointment of agents outside the country to bring dynamism in the country’s secondary securities market.
They also decided to introduce a uniform price quoting system for trading of the government securities in the secondary market.
The decision was taken at a meeting of the newly formed Primary Dealers Bangladesh Limited (PDBL), an association of PD’s, held at the Prime Bank Limited Monday with its Chairman and Chief Executive officer of the Sonali Bank Limited SA Chowdhury in the chair.
“We will take opinions of our technical committee to introduce such price quoting system,” a senior member of the PDBL told BBN after the meeting, adding that the PDBL has taken an action plan to gear up the function of the PDs.
The central bank of Bangladesh earlier selected nine PDs – eight commercial banks and one non-banking financial institution (NBFI) – to handle government securities.
The meeting also discussed appointment of agents outside the country to sell the government bonds to the Non-Resident Bangladeshis (NRBs).
The secondary market has developed gradually but it is still hovering among banks and non-banking financial institutions and insurance companies, they observed.
A total of BDT 70 billion was traded in the secondary market during the first quarter of the current fiscal against BDT 15 billion of the corresponding period of the previous fiscal, according to the PDBL statistics.
Currently, four government bonds – 5-year, 10-year, 15-year and 20-year duration – are being traded in the markets.
BBN/SI/SS/AD-20October08-9:15 PM (BST)