According to the guidelines of the Bangladesh Bank, to be eligible for primary dealership in the government securities market, an institution must meet the following criteria:
1) Physical
infrastructure in terms of number and geographical coverage of offices/branches
for securities dealings, the extent of use of computers and information
technology in settlement, record keeping and analysis of day-to-day
transactions, skill and capabilities of the manpower for efficient
participation in primary issues and secondary trading, and for advising and
educating the investing public about investment in Government securities;
2) Internal
control system for fair conduct of business, settlement of trade and
maintenance of accounts in securities transactions, risk management
capabilities and arrangements;
3) The
level of past engagement in primary auctions and secondary trading transactions
in Treasury bills and other Government securities, on own account and on
account of customers;
4) Solvency
and overall standard of the applicant's compliance with the prudential and
regulatory guidelines of the BB and other relevant regulatory agencies.
5) Others:
1. The
institution must have a minimum paid-up capital of BDT 50 crore and must have
been in operation for at least three years.
2. The
institution must have experience in dealing with debt securities, money market
instruments, or foreign exchange.
3. The
institution must have a minimum of two qualified dealers who are trained in
government securities trading.
4. The
institution must not have been involved in any fraudulent or illegal activities
in the past.
5. The
institution must comply with all applicable laws, regulations, and guidelines
of the Bangladesh Bank.
Meeting these eligibility criteria does not guarantee that an institution will be granted primary dealership status, as the Bangladesh Bank may also consider other factors such as market conditions and the overall number of primary dealers in the market.