The Bangladesh Bank (BB) has issued new guidelines for trading government securities on the secondary market, aiming to promote their popularity and develop the capital market. Investors interested in purchasing sovereign securities, also known as government bonds, through the stock exchange must possess Beneficiary Owner (BO) accounts. If they opt to buy securities through the BB-sponsored MI module, they will need a Business Partner Identification (BPID) account. All banks and financial institutions are eligible to participate in MI module transactions. The guidelines outline measures to address defaults, with penalties imposed on parties failing to deliver securities or make payments on the settlement day. Defaulting parties may be required to settle the transaction through market buy-in or fund management, while facing penalties and temporary exclusion from secondary trading and interbank repo activities.
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