KARACHI: The State Bank of Pakistan (SBP) has initiated the procedure for selection of Primary Dealers, Preliminary Primary Dealers and Special Purpose Primary Dealers for fiscal year 2021-22.
In terms of rule C-1 of Rules Governing Primary Dealer System, SBP has invited applications from eligible institutions for appointment as Primary Dealers/Preliminary Primary Dealers/Special Purpose Primary Dealers of Government Securities (i.e. Pakistan Investment Bonds and Market Treasury Bills) for FY 2021-22.
For selection criteria, process thereof, privileges, obligations and performance criteria for each category of dealership, PD rules already announced in master circular will be followed, a circular issued on Wednesday said.
According to SBP, category of primary dealership applied, ie, Primary Dealers/Preliminary Primary Dealers/Special Purpose Primary Dealers must be mentioned along with application.
The SBP also asked for business plan approved by the Asset-Liability Committees (ALCOs) in case of banks and DFIs, and by the Board of Directors (BOD) in case of all other eligible institutions.
Guidelines issued through the master circular on PD Rules for submission of Business plan will be followed and business plan must include all relevant details as mentioned in the referred guidelines. Applicants other than banks and DFIs will also share the detail of the processes, mechanism and systems in place for the timely and seamless processing, clearing and settlement of transactions related to the Dealers activity including primary auctions.
Applicants are also required to submit the latest audited annual financial report or statement and latest schedule of business charges relevant to dealership activity.
Detail of Investor Portfolio of Securities (IPS) Accounts as of 21-May-2021 will also be required along with application. Applications will be sent to Director ‘Domestic Markets & Monetary Management Department’ and must reach State Bank of Pakistan, Karachi latest by 25-May-2021 (close of business).
Copyright Business Recorder, 2021
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