Citizens and Foreign Employment Savings Bonds Can Now Be Traded on the Secondary Market

The Public Debt Management Office has implemented a new procedure under the "Internal Debt (Issuance and Management) Guidelines, 2081," allowing Citizens Savings Bonds and Foreign Employment Savings Bonds to be traded on the secondary market. This new arrangement provides the convenience of buying and selling these savings bonds similar to stock trading in the capital market.

Secondary Market Trading: Citizens Savings Bonds and Foreign Employment Savings Bonds can be traded on the secondary market through 'DOMS' and the 'Investor Portal.'

• Treasury Bills: Another instrument that can be traded on the secondary market is 'Treasury Bills,' which will also be tradable through 'DOMS.'

• Development Bonds: These bonds can be traded through NEPSE-listed broker companies after being listed on NEPSE.

• Savings Bonds Sale Process: According to the annual schedule, the sale, closure, and issuance of Citizens Savings Bonds and Foreign Employment Savings Bonds will be conducted.

• Non-Resident Nepalis: Non-Resident Nepalis (NRNs) will also be allowed to purchase Citizens Savings Bonds.

• Interest Payment: Interest will be paid semi-annually and directly credited to the purchaser's bank account.

Trading Management:

• Role of Market Makers: Commercial banks, development banks, and finance companies licensed by the Nepal Rastra Bank will be authorized as market makers for trading government bonds and savings bonds.

• Sales Agents: Remittance companies, money transfer companies, and licensed banks and financial institutions will also be authorized as sales agents.

This guideline aims to enhance transparency and efficiency in public debt management while providing a secure savings opportunity for Nepali citizens and those working abroad. Additionally, the introduction of new types of financial instruments for trading in the capital market is expected to have a positive impact on overall economic activities.