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.