Government securities can be traded through BO accounts
Investors will be able to include risk-free securities in their portfolios, such as government securities
From now onwards, ordinary investors will be able to transact government securities (treasury bills, treasury bonds, etc) through BO accounts, and the face value of the traded securities will be Tk100 and the market lot will be Tk1000.
A Memorandum of Understanding (MoU) was signed in this regard between the Bangladesh Bank, Bangladesh Securities and Exchange Commission, Dhaka Stock Exchange Limited, Chittagong Stock Exchange PLC and Central Depository Bangladesh Limited on Sunday.
Investors will be able to include risk-free securities in their portfolios, such as government securities. As a result, portfolio risk for investors will be reduced.
The development work of the government will increase the opportunity to raise money from the internal sector, which will reduce the dependence on banks or financial institutions. This will create a vibrant bond market in the capital market and increase the market capital to a large extent.
The yield curve of different term bonds will be available due to trading on the government securities stock exchange trading platform. This yield curve will make it easier to determine interest rates or dividends on other bonds. As a result, future interest rates or dividends on various term bonds can be estimated on this basis.
The buyer or bondholder will deposit the coupon money in the bank account through BEFTN on the coupon date. As a result, buyers and sellers are not likely to be harmed.
Rehana Parveen, additional secretary, Finance Department, gave a welcome speech on the occasion.
A joint presentation on Government Securities Trading Activities at the Stock Exchange Trading Platform was also made during the event.
Abdur Rauf Talukder, senior secretary of the Finance Department, addressed the function as the chief guest. He said the overall economic progress and growth of the country would be further enhanced if the capital market and money market regulatory bodies work together.
By conducting secondary transactions of government securities on the stock exchange platform, a vibrant bond market will be formed and the market capitalisation of the capital market will be greatly increased.
Representatives of various stakeholder organisations were present on the occasion.
