BoZ revises government security operation rules

BOZ building.

THE Bank of Zambia (BoZ) has amended the Government Securities operation rules in the second phase of its implementation of the central securities depository (CSD) to allow investors submit their bids through their respective commercial banks.
“BoZ wishes to inform the public and all investors in Government securities that following the implementation of CSD system on September 2, 2014, further amendments have been made to the investment process under the second phase of implementation process,” the statement reads.
CSD is the BoZ government securities registration and Settlement System, which is integrated with the Zambian Interbank Payment and Settlement System (ZIPSS).
The system maintains primary record of ownership and settles transactions, on the instructions of participants, in securities issued by the BoZ and other eligible issuers.
This is according to a notice issued by BoZ on Monday.
In September, the BoZ first amended the rule in accordance with the Loans and Guarantees (Authorisation) Act Cap 336 of 1996 which gives the central Bank the agency role in the issuance of Government securities and the BoZ Act No 43 of 1996, Section four which gives the Bank authority to implement monetary policy.
BoZ says the amendment of rule will also allow investors to pay their bids through central bank as long as they obtain a letter of guarantee from their respective commercial banks and individual wishing to bid should submit atleast a day prior to the auction to the finance market department.

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