KATHMANDU, Sept 26: The Public Debt Management Office issued the Internal Debt (Issue and Management) Procedure, 2081, and has provided that Citizen Savings Bonds and Foreign Employment Savings Bonds can also be traded in the secondary market.
With this, now, like stock trading in the capital market, savings bonds can also be bought and sold.
The secondary market transaction of Citizen Savings Bonds and Foreign Employment Savings Bonds can be done through the ‘Debt Operation and Management Software (DOMS)' and the Investor Portal.
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The online trading system implemented by Nepal Stock Exchange (NEPSE) for trading in the secondary market of securities, such as citizen savings bonds, foreign employment savings bonds, or other types of bonds, has been implemented by the Public Debt Management Office, 'DOMS,' and 'Investor Portal.'
Another tool used by the government to raise internal debt, the secondary market trading of 'Treasury Bills,' can also be done through 'DOMS,' but the secondary market trading of development bonds will be sent to NEPSE for listing after issuance, and it has been arranged that trading can be done through broker companies listed in NEPSE.
The sale of Citizen Savings Bonds and Foreign Employment Savings Bonds will be opened, closed, and issued according to the annual schedule and issuance schedule approved by the Public Debt Management Office for domestic debt collection. Non-resident Nepalis can also purchase citizen savings bonds.
"People who want to buy Citizen Savings Bonds and Foreign Employment Savings Bonds can get a username and passcode by registering and entering details in the prescribed format in the investor portal for the first time," the procedure states. It is also mentioned in the procedure that when such savings bonds are issued, they will be distributed through the first applicant's first-priority process within the specified period.
The interest on Citizen Savings Bonds and Foreign Employment Savings Bonds will be directly deposited into the buyer's bank account on a semi-annual basis. The procedure states that when calculating the fixed interest for such savings bonds, one month will be equal to 30 days, and one year will be equal to 360 days. One working day before the interest payment date, ownership of savings bonds cannot be transferred through secondary market transactions.
Commercial banks, development banks, and finance companies licensed by Nepal Rastra Bank will be licensed as market makers for dealing in government bonds and savings bonds.
Similarly, a provision has also been made in the procedure that companies of a certain nature can be licensed as sales agents for savings bonds issued by the Public Debt Management Office. "The office may grant permission to licensed banks and financial institutions, remittance companies, and money transfer companies to act as sales agents for remittances from banks," the procedure states.
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