All
Authorized Dealers
In Foreign Exchange,
Dear
Sirs,
MOBILIZATION
OF FOREIGN CURRENCY
DEPOSITS BY THE INVESTMENT BANKS
Attention
of Authorised dealers is invited to instructions contained
in paragraphs 6 and 7, Chapter xx of the Exchange Control
Manual as revised vide F.S. Circulars Nos. 84, 104 and 122
of 1991 regarding issue and transfer of securities
in favour of non-residents, where such non-residents want
to make investment in Pakistan.
2. It has now been decided by the Government
to allow non-residents to trade freely in the shares quoted
on the Stock Exchanges in Pakistan. For this purpose the
non-residents will be required to open a Special Convertible
Rupee Account with any Authorised Dealer in Pakistan. Such
accounts can be fed by remittances from abroad. The
balance available therein can be used for purchase of any
share quoted on the Stock Exchange. Payment for such purchases
may be debited to the account on production of stock broker's
memo showing sale of charges to the account holder and sale
proceeds of chares may be credited provided evidence
of the sale prices on the shape of stock broker's memo on
produced. The fund available in such special rupee account
can be transferred outside Pakistan at any time without
prior approval of the State Bank.
3.
The Authorised Dealers will be required to submit to the
Senior Deputy, Exchange Control Department, Investment Division,
Central Directorate, Karachi a statement showing the balance
as on 30th June each year in each such individual account,
the total amount of inward remittances in the account and
the market value of stock held by the account holder as
on 30th June
4. The procedure for reporting transactions
routed through the 'Special convertible rupee Account and
the relative code numbers will be advised shortly.
