The central bank has selected ten banks and one financial institution as Primary Dealers of Government Securities (PIB & MTB) for FY 2017-18.
The central bank received thirteen applications for appointment of Primary Dealers of Government Securities (PIB & MTB), out of which following were selected:
- Habib Bank Limited
- National Bank of Pakistan
- United Bank Limited
- Bank Alfalah Limited
- Allied Bank Limited
- Pak Oman Investment Company Limited
- JS Bank Limited
- MCB Bank Limited
- Faysal Bank Limited
- Citibank NA (Pakistan Operations)
- Standard Chartered Bank (Pakistan) Limited
It merits mentioning here that all 11 above banks were primary dealers of government securities last time as well. NIB Bank was included in the list of Primary Dealers last year but since it has now merged with MCB, it is no more listed in the list of primary dealers.
The central bank has notified top three performing PDs during FY 2016-17 as Habib Bank Limited, National Bank of Pakistan and United Bank Limited.
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.
SBP said that selected banks can distribute Government securities to non-PD banks and other retail/institutional clients.
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.