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MVG-BILL

A Mount Vema Government Bill (MVG-Bill) is a short-term marketable security debt obligation backed by His Mount Vema Majesty’s Government with a maturity of less than one year, sold in denominations of 100 golles up to a maximum purchase of 1 million golles. MVG-Bills have various maturities and are issued at a discount from par. Like zero-coupon bonds, MVG-Bills do not pay interest prior to maturity; instead they are sold at a discount of the par value to create a positive yield to maturity.
Issuance – Purchase Process
Mount Vema Government bills are sold monthly at the primary market by single-price, and like other securities, individual issues of MVG-bills are identified with a unique number.

Offering amounts for bills are announced at the end of the month for the following month issue, as well as for settlement (redeeming of maturing MV-Bills). Purchase Orders must be entered before 4:00 p.m. on the day which the official announcement has been made. The minimum purchase, is 100 golles. Although MVG-bills are now purchased by a growing number of private investors, banks and financial institutions, especially primary dealers, tend to be the largest purchasers of MVG-bills.

Trading MVG-bills – Secondary Market
MVG-bills are quoted for purchase and sale in the secondary market of the Mount Vema Stock Exchange, at a discount from the par value. When investors redeem their MVG-Bills at maturity, they are paid the par value. The difference between the purchase price and par value is interest. For example, an investor purchases a par value 100 golles MVG-Bill for 80 golles. When this MVG-Bill matures, the investor is paid 100 golles, thereby making 20 golles on the investment.

Benefits to Investors
There are a number of advantages that MVG-bills offer to investors. They are considered low-risk investments and the income received is tax free. With a minimum investment requirement of just 80 golles, and a maximum investment of 1 million golles, they are accessible by a wide range of investors. The main downfall of MVG-bills is that they offer lower returns than many other investments, but these lower returns are due to their low risk. Investments that offer higher returns generally come with more risk.
​Regulatory Body
The Mount Vema Securities and Exchange Council (MVSEC) is the regulatory body charged with overseeing the activities of the Gollexi. An agency with the mission to protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation.
Remember that trading in the stock market can result in the loss of your entire capital. Please ensure you fully understand the risks involved.