The stock market regulator Bangladesh Securities and Exchange Commission (BSEC) in a fresh move has allowed ordinary investors to purchase Treasury bonds in a primary auction.
The decision was taken at a commission meeting on Sunday, with its Chairman Prof Shibli Rubayat Ul Islam in the chair.
Along with including the approval of process flow and guidelines for the participation of general capital market investors and holders of beneficiary owner (BO) accounts in the primary auction of the Bangladesh Bank’s Treasury Bonds through their respective stock brokers, the guidelines will aim to increase the supply of treasury bonds and government securities in the capital market, said a BSEC circular.
The securities regulator believes this move will create a more robust bond market in the country.
This development opens up opportunities for ordinary investors to purchase treasury bonds worth Tk 1 lakh or multiples thereof in the primary auction.
The decision to include general investors in the initial sale of government bonds allows more people to invest and access investment opportunities aiming at promoting inclusivity and encouraging broader participation from all members of society.