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Banks asked to cooperate individuals in BGTBS investment

  • Published at 06:10 pm January 22nd, 2014

Bangladesh Bank (BB) has asked all the scheduled banks and the financial institutions to cooperate the individual investors in issuing Bangladesh Government Treasury Bonds (BGTBS) to meet the growing demand for such bonds at individual level, says a BB circular.

The central bank yesterday issued such a circular in the wake of banks’ overall failure in providing necessary information as well as supports to the individuals, who are now keen to invest on the BGTBS.

According to the circular, Individuals and Institutions resident in Bangladesh such as banks, non-bank financial institutions, insurance companies, bodies corporate, authorities responsible for the management of provident funds, pension funds etc shall be eligible to purchase the BGTBS as per the related instruction.

The circular reads-individuals and institutions not resident in Bangladesh shall also be eligible to purchase the BGTBs, with coupon payments and resale/redemption proceeds transferable abroad in foreign exchange, provided that the purchase is made with funds from a non resident foreign currency account with a bank in Bangladesh in the name of purchaser and the BGTB purchased by a non resident may freely be resold to a resident in Bangladesh or to another non-resident.

Banks or financial institutions having MI Module account can collect and stored such Treasury Bills/Bonds for the clients in primary auction by opening an account named Business Partner ID (BP ID). And such bonds can be sold or bought in the secondary market through OTC (over the counter), said the circular.