State Bank of Pakistan (SBP) has declared three banks as the best-performing dealers of the government securities including the National Bank of Pakistan, Habib Bank Limited and Bank Alfalah Limited.
These banks played an active role in accordance with the scope of work in the outgoing financial year as the primary dealers.
SBP has appointed 11 banks and one investment bank as the primary dealers of the government securities for the next financial year.
These institutions include:
1. Habib Bank Limited
2. National Bank Limited
3. Bank Alfalah Limited
4. Allied Bank Limited
5. Standard Chartered Bank
6. Faysal Bank Limited
7. Citi Bank N.A. (Pakistan Operations)
8. MCB Bank
9. United Bank
10. JS Bank
11. Bank of Punjab
12. Pak Oman Investment Company
The primary dealers are required to actively participate in the primary market by bidding in the auctions of Government securities as conducted by the State Bank of Pakistan from time to time. These 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.