Regulatory Alerts2001-01-01
CB Circular 22/2001: Government Securities Off-Tender Operating Agreement
The Bank of Zambia issued Circular 22/2001 to establish a formal operating agreement authorizing licensed commercial banks to act as agents for the non-competitive off-tender sale of government securities. The framework mandates that designated agents maintain segregated Book Entry System accounts, submit consolidated customer applications by 10:00 hours on Fridays, and strictly adhere to transaction limits, a maximum two percent handling fee cap, and statutory tax withholding requirements. Additionally, the agreement defines operational parameters including weekly Friday sales at weighted average tender rates, secondary trading protocols via the Lusaka Stock Exchange, and enforceable confidentiality and termination provisions to safeguard market integrity.