The country's premier bourse has recently formed a four-member committee, which is planning to sit with primary dealers this month to persuade them into putting price quote on the secondary market.

Since the launch of debt securities on the DSE in 2005, only one treasury bond has so far been transacted on the secondary market. Even the market sees no price quoting of such bonds.

The main reason behind this situation is that the primary dealers are holding the bonds as statutory liquidity reserve (SLR). Presently, the financial institutions have to keep 13 percent of their total deposits as SLR.

Sonali, Janata, Agrani, Prime, Uttara, Jamuna, Southeast and NCC banks and IDLC are the primary dealers of the treasury bonds.

In 2006, the DSE held a number of meetings to persuade the primary dealers into taking active role in the secondary market for bond transactions through the DSE.

However, the DSE could not motivate the primary dealers much to place two-way quote for bond in the exchange system.

"We are hopeful that the primary dealers will also support the government initiative to motivate the stock market by starting active offers for such bonds through stock exchange," said DSE Chief Executive Officer Salahuddin Ahmed Khan.

He said the DSE will try its best to make active at least one or two dealers within this year.

"If we can succeed, we believe within a few years this security market of bond will become the prime mover of capital market and money market. Institutions will also be able to use the bond market as an effective tool for market liquidity management," Salahuddin hoped.

Besides, it will also help any government attempt in raising necessary funds within short term without disturbing market equilibrium, the CEO said.

A total of 49 government treasury bonds have so far been listed on the DSE. Listed bonds are of three categories -- having five-year maturity period with 7.5 percent interest rate, ten-year maturity period with 8.5 percent interest and 15-year maturity period with 14 percent interest.