SBP invites applications for primary dealers of treasury bills

SBP invites applications for primary dealers of treasury bills

KARACHI:  The State Bank of Pakistan (SBP) has announced its invitation for applications from eligible institutions to become primary dealers of treasury bills. This move aims to enhance the efficiency and effectiveness of the government securities market.

The SBP’s call for applications includes the appointment of Primary Dealer, Preliminary Primary Dealer, and Special Purpose Primary Dealer for Government Securities, specifically Pakistan Investment Bonds and Market Treasury Bills, for the fiscal year 2023-24.

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Interested institutions are required to meet the selection criteria, as well as follow the outlined application process, privileges, obligations, and performance criteria for each category of dealership. All the necessary information can be found in the master circular on PD rules issued by the SBP.

Applicants are requested to submit the following information along with their applications: the category of primary dealership applied for, a business plan approved by the relevant governing body (ALCO for banks and DFIs, and BOD for other eligible institutions), and details of the processes, mechanisms, and systems in place for seamless processing, clearing, and settlement of transactions related to the dealership activity. Additionally, applicants must provide the latest audited annual financial report/statement, the schedule of business charges relevant to dealership activity, and the Investor Portfolio of Securities (IPS) accounts as of May 25, 2023.

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Existing primary dealers and special purpose primary dealers are also required to share updates on the implementation of their business plans submitted in the previous year, including any development initiatives undertaken during the current fiscal year, FY2022-23.

Applications must be addressed to the Director of the Domestic Markets & Monetary Management Department and reach the State Bank of Pakistan in Karachi no later than the close of business on May 31, 2023.

The SBP’s initiative to appoint primary dealers of treasury bills is expected to promote transparency, competitiveness, and liquidity in the government securities market.

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