Govt securities' trial trading stats on 10 Oct
The trading of government securities (G-Sec) will commence on a trial basis on the Dhaka Stock Exchange (DSE) on Monday, the country's premier bourse made the announcement on Thursday.
Earlier, on 3 October, Bangladesh Bank Governor Abdur Rouf Talukder said treasury bonds trading will start the next week.
Treasury bonds are the largest debt instruments through which the government borrows from the market for various tenures.
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In Bangladesh, there are over 250 treasury bonds valued at over Tk3 lakh crore now.
The instruments historically have been beyond the reach and thoughts of investors other than banks, insurers and non-bank financial institutions due to the lack of a vibrant secondary market platform.
The financial service providers who are compelled to invest in treasury instruments are the main investors of government securities in Bangladesh.
The DSE officially launched treasury bond-bill's secondary trading in the early 2000s but not a single trade took place after the first day due to the then inefficient trading cost structure and inconvenient trade settlement system between the money market and the capital market.
In 2019, the BSEC, the DSE and the Bangladesh Bank entered into a tripartite agreement where the DSE agreed to waive all listing fees for government bonds and have the rational tax structure from the government DSE also agreed to charge a feasible amount in trading and settlement of government bonds.
While the central bank agreed to allow data exchange with the bourse and the Central Depository Bangladesh Ltd (CDBL) to let treasury bonds trade in the stock exchanges' debt platform.
