BB pays Tk 156m as underwriters commissions to PD banks
FE Report | Wednesday, 2 July 2008
The Bangladesh Bank (BB) has paid a total of Tk 156 million as underwriters' commissions to the primary dealer (PD) banks and financial institutions for fiscal year 2007-08.
The central bank credited Tk 1.43 million as commissions for June of the fiscal 2007-08 to nine PDs through their accounts held with the BB Monday, officials said.
For July-May period of the just concluded fiscal, the central bank earlier paid Tk 141.60 million as commissions to the PDs that have traded in government-approved securities.
"We have paid all commissions to the PDs for the fiscal 2007-08," a BB senior official told the FE, adding that the central bank has proposed the government to allocate Tk 250 million for such commission for fiscal 2008-09.
The government has allocated Tk 180 million to pay the commission to PDs for the fiscal year 2007-08.
Earlier, the government approved the underwriting commission by fixing the rates for treasury bills and bonds for the PDs aiming to bring dynamism in the country's secondary market, they added.
Under the government decision, the PDs will receive 0.025 per cent (2.50 paisa) as underwriting commission for the government approved treasury bills and 0.075 per cent (7.5 paisa) for the bonds.
The central bank has already amended the guidelines for PDs offering commission and liquidity support to activate the secondary market.
Under the amended guidelines, each of the bank and non-bank PDs can underwrite a minimum of 12 per cent and 4.0 per cent of the auction amount respectively for fiscal 2007-08 until further notice.
The central bank credited Tk 1.43 million as commissions for June of the fiscal 2007-08 to nine PDs through their accounts held with the BB Monday, officials said.
For July-May period of the just concluded fiscal, the central bank earlier paid Tk 141.60 million as commissions to the PDs that have traded in government-approved securities.
"We have paid all commissions to the PDs for the fiscal 2007-08," a BB senior official told the FE, adding that the central bank has proposed the government to allocate Tk 250 million for such commission for fiscal 2008-09.
The government has allocated Tk 180 million to pay the commission to PDs for the fiscal year 2007-08.
Earlier, the government approved the underwriting commission by fixing the rates for treasury bills and bonds for the PDs aiming to bring dynamism in the country's secondary market, they added.
Under the government decision, the PDs will receive 0.025 per cent (2.50 paisa) as underwriting commission for the government approved treasury bills and 0.075 per cent (7.5 paisa) for the bonds.
The central bank has already amended the guidelines for PDs offering commission and liquidity support to activate the secondary market.
Under the amended guidelines, each of the bank and non-bank PDs can underwrite a minimum of 12 per cent and 4.0 per cent of the auction amount respectively for fiscal 2007-08 until further notice.