Please refer to the Para 5(vi) of the Guidelines on Commercial Paper (CP) communicated vide BPD Circular No. 28 dated August 23, 2003 whereby banks/DFIs interested in investing in CP were required to obtain one time prior approval from SBP for commencing/undertaking such activity.

2. It has been decided to replace para 5(vi) of the above mentioned circular with the following para with immediate effect:

“5 (vi) The banks/DFIs may make investment in Commercial Paper (CP) as per policy approved by their Board of Directors and keeping in view the bank’s /DFI’s equity. However, the bank/DFI would ensure that the risks associated with investment in CP are in line with the risk taking capacity of the bank/DFI and appropriate measures have been taken to mitigate these risks”.

3. All other instructions on the subject shall remain unchanged.

4. Please acknowledge receipt.