Mr Keith Kalyegira. PHOTO/COURTESY
Primary dealers in government papers (bonds), which are mostly composed of financial institutions or banks, must exercise good and fair pricing to promote transparency and participation in the securities market, according to Capital Markets Authority (CMA).
Speaking during the 10th Financial Reporting Awards in Kampala early this week, Mr Keith Kalyegira, the CMA chief executive officer, said there is need to improve pricing of bonds in the secondary market.
“The Central Bank recently announced the approved primary dealers [plan], so primary dealers should do good pricing of bonds in the secondary market. We should have a standard level of price transfers in the secondary market,” he said, noting that for Ugandans to put their investments in financial assets, they must be secure and well-priced.
Primary dealers buy securities directly from government, which they resell in the secondary market.
Bank
of Uganda recently announced that in order to enhance money flow in
securities market, effective October 01, there would be competitive
bidding but only limited to primary dealer (banks)
Seven banks, including Absa, Bank of Baroda, Centenary, dfcu, Housing Finance Bank, Stanbic, and Standard Chartered were appointed primary dealers after an evaluation process that had started early this year.
Mr Kalyegira said there is need to increase domestic savings and good financial reporting increases companies’ investments as well as helping individuals to invest and make savings.
No comments :
Post a Comment