The Chief Executives,
All Banks

Dear Sir/Madam,

Receipt and Processing of Applications for Subscription

It has come to our knowledge that during public issue of shares, the bankers to the issue (i.e., banks who are authorized to receive applications for shares) do not accept and process duly completed subscription applications (i.e., accompanied with pay order in favour of the issuer company and copy of the National Identity Card of the applicant) from prospective investors, who are not their account holders. This is discouraging the investments in capital markets by small investors, besides causing inconvenience to the account holders of other banks who wish to subscribe in the new capital issues. This is defeating the very purpose for which these issues are offered for sale to general public. The practice has been viewed seriously by State Bank of Pakistan and it has, therefore, been decided that the bankers to the issue will, with immediate effect, ensure that their branches accept and process all duly completed subscription applications from all applicants, irrespective of the fact whether these applicants are their account holders or not. The banks are advised to immediately issue necessary instructions in this regard to their respective branches, under intimation to SBP, to ensure compliance with the above instructions, in letter and spirit. Any breach of these instructions will attract the penal action under the Banking Companies Ordinance, 1962.

Please acknowledge receipt.