SBP Appoints 11 Banks As Primary Dealers For Govt Securities

State Bank of Pakistan has selected ten commercial banks and one investment bank as Primary Dealers of Government Securities (PIB & MTB) for FY 2018-19. State Bank of Pakistan received 12 applications for appointment of Primary Dealers of Government Securities (PIB & MTB). Upon evaluation of each applicant’s performance under the criteria laid down in the rules, the following institutions have been selected as Primary Dealers of Government Securities (PIB & MTB) for FY 2018-19. The primary dealers are required to actively participate in the primary market by bidding in the auctions of Government securities as conducted by State Bank of Pakistan from time to time. These selected banks can distribute Government securities to non-PD banks and other retail/institutional clients. ALSO READ SBP Asks Islamic Bank to Develop Skill Building Programs for Bankers These dealers must play an active role in secondary market development to enhance liquidity and turnover, and to widen the investor base of Government securities by creating awareness among investors, the central bank has said. These dealers are required to act as a market maker in Government securities by quoting two-way prices in the market. They should continuously upgrade their infrastructure in terms of both physical equipment and skilled manpower for efficient participation in primary auctions and secondary market trading. They should provide efficient custody services to their customers (Investors Portfolio of Securities Accounts) for Government securities holding, collection and, payment of profits & maturity proceeds. The central bank declared the following banks as top three performing Primary Dealers during FY 2017-18: In 2016-17, the central bank notified top three high performing PDs during FY 2016-17 as Habib Bank Limited, National Bank of Pakistan and United Bank Limited.