Secondary market trading of Treasury securities issued in the primary market is done over the counter. Holders of such securities are free to trade them with any counterpart in the market. Changes in ownership shall only be effected by both parties to a transaction and upon completion of form CBL/TBR/2. On the day the transaction takes place, both the buyer and the seller, or their respective authorised representatives shall present themselves simultaneously at the Bank to complete the transaction. The Bank shall only act upon instructions contained in form CBL/TBR/2 completed and signed by authorised signatories of both parties to the transaction.
The Central Bank of Lesotho stands ready to buy treasury securities from investors provided that such a purchase shall take place at least five (5) working days prior to maturity date of the securities. The Bank offers a rediscounting facility through which it can only buy back the Treasury securities provided that 75% of the maturity period has elapsed.
Investors may use their securities as collateral against borrowing from third parties provided that the maturity date of the loan comes before the maturity date of the securities being used as collateral.