Stakeholders will sign an agreement on June 12 to commence the trading of treasury bonds in a bid to diversify the capital market with the participation of general investors.
Bangladesh Bank, Bangladesh Securities and Exchange, Dhaka and Chattogram bourses, Central Depository Bangladesh Ltd and Central Counterparty Bangladesh Ltd will sign the deal led by finance ministry.
All preparations have been made to commence the long-awaited trading of treasury bonds. An agreement is required under a legal framework for this, says BSEC commissioner Prof Shaikh Shamsuddin Ahmed.
The trading of treasury bonds is likely to be started within one month into signing the agreement.
"Apart from conducting mock trade," adds Mr Ahmed, "we've already checked necessary preparations for the trading of treasury bonds. The platform awaits the trading of treasury bonds."
As part of a joint move, Dhaka Stock Exchange conducted mock trading of treasury bonds on 14 October 2021 with an intent to start the trading within two months.
Later, Chittagong Stock Exchange conducted similar trading on November 01 through a virtual programme joined by top officials of the securities regulator and the ministry concerned.
But the trading of the bonds has not taken place in the secondary market yet due to multiple complexities.
Previously, a total of 222 treasury bonds were listed with the bourses.
Except banks, general investors have no access to the MI (market infrastructure) module introduced by the central bank for the transaction of bonds.
When asked, a BB official says the central bank is the sole depository of the treasury bonds as per the law.
"The BB's MI module has been integrated with the trading software of the bourses to commence trading of such bonds in the secondary market," he adds.
According to the official, all T-bond transaction-related information will be preserved in the central bank.
An official of the capital market depository authority says information regarding bond transactions will be sent to the central bank through the CDBL.
After commencement of the trading in the market, general investors will also be able to take part in T-bond transactions through BO (beneficiary owner) accounts.
The securities regulator and bourses have been trying to initiate the trading to diversify the stock market along with developing the bond market.
Earlier, a series of meetings were held among the BSEC, the central bank and bourses to pave the way for starting the trading in T-bonds.
