The State Bank of Pakistan (SBP) has invited applications from eligible institutions for appointment as Primary Dealers, Preliminary Primary Dealers, and Special Purpose Primary Dealers of Government Securities.
The procedure is to select PDs for Pakistan Investment Bonds and Market Treasury Bills, for the fiscal year 2021-22, under the terms of rule C-1 of Rules Governing Primary Dealer System.
A circular issued by the SBP detailed the selection criteria, process thereof, privileges, obligations, and performance criteria for each category of the dealership, along with main PD rules.
According to the central bank, a business plan, approved by the Asset-Liability Committees (ALCOs), is also required in the case of banks and DFIs, and a plan approved by the Board of Directors (BoD), in case of all other eligible institutions.
Applicants are also required to submit the latest audited annual financial report or statement and the latest schedule of business charges relevant to dealership activity.
Applicants other than banks and DFIs will also share the detail of the processes, mechanisms, and systems in place for the timely and seamless processing, clearing, and settlement of transactions related to the Dealers activity, including primary auctions.
Detail of Investor Portfolio of Securities (IPS) Accounts as of 21-May-2021 will also be required along with the application.
Applications will be sent to Director ‘Domestic Markets &amp;amp;amp; Monetary Management Department’ and must reach State Bank of Pakistan (SBP), Karachi latest by 25-May-2021 (close of business).
Source: Pro Pakistani