KARACHI, Aug 7: The State Bank has appointed 11 primary dealers for the fiscal year July/June 2003/04.

A circular issued by the Exchange & Debt Management Department of SBP notified the names of the new primary dealers to all banks and non-bank financial institutions as well as to listed brokerage houses. The list of the new PDs include for the first time the name of a brokerage house Jahangir Siddiqui & Co Ltd and that of an investment company — Pak Oman Investment Co Ltd.

Other primary dealers are (i) American Express Bank (ii) Habib Bank (iii) Standard Chartered Bank (iv) Union Bank (v) National Bank (vi) Citibank (vii) United Bank and (viii) Bank Alfalah Ltd.

Primary dealers are the institutions that sell government securities in the inter-bank market on behalf of the State Bank.

The SBP circular said new primary dealers have been appointed under fresh criteria laid down for them early last month.

Market sources say the inclusion of a listed brokerage house and an investment company in the list of the primary dealers is good for the market as it would create a healthy competition between them and the banks that have been appointed primary dealers.

Jehangir Siddiqui & Co were the first few who had applied for becoming primary dealers when the SBP had first introduced this concept a couple of years ago. But its management had withdrawn its candidacy after developing some difference of opinion with the SBP on technical matters. Until recently there were only six PDs. Bankers say the increase in their number would also have a positive impact on the inter-bank.