FE Report
The central bank has sought opinion from the primary dealers (PDs) by August 18 for fixation of criteria to select top three PDs for providing higher underwriting commission for treasury bills and bonds quarterly.
The PDs have urged the central bank to review the proposed criteria giving emphasis on secondary trading of the government securities instead of success ratio in primary auction to bring dynamism in the secondary market.
The appeal was made at a meeting with the Bangladesh Bank (BB) officials, held in the central bank Wednesday with its Senior Executive Director Khandakar Muzharul Haque in the chair.
The top PDs will be selected on the basis of both success ratio in primary auction and trading of government securities in secondary market.
Weight on success ratio and secondary trading will be equal for selection of top three PDs, according to the BB's existing proposal.
"We've requested the central bank to revise the proposed criteria for selection of top three PDs considering higher weight on secondary market trading of securities than success ratio in the primary auction to facilitate the secondary market," a senior PD told the FE.
"We'll finalise the criteria after scrutinising the PDs' opinions," a senior official of BB told the FE, adding that the central bank would submit the final proposal in this connection to the finance ministry for approval.
The government earlier agreed to offer higher underwriting commission for treasury bills and bonds for top three PDs aiming to bring dynamism in the secondary securities market, officials said.
Under the initial decision, the top PDs will receive 0.03 per cent (3.0 paisa) instead of 0.025 per cent (2.50 paisa) as underwriting commission for the government approved treasury bills and 0.08 per cent (8.0 paisa) instead of the existing 0.075 per cent (7.5 paisa) for the bonds.
BB seeks opinion from PDs for selecting top 3 dealers
FE Team | Published: August 13, 2009 00:00:00 | Updated: February 01, 2018 00:00:00
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