Please
refer to our Circular No.20 dated 4th August,2000 on the captioned
subject.
In terms of the above referred Circular banks/NBFIs
were, interalia, required to enter into Master Repo Agreement
(MRA) with the counter party by 15th January,2000. It has
been observed that some banks/NBFIs have not yet entered into
Master Repo Agreement with counter parties. However keeping
in view the fact that MRA is new for money market in Pakistan
as well as a comprehensive legal document, it has been decided
to further extend the time up to 31st December, 2000 for entering
into Master Repo Agreement with the counter party. Thereafter
if any bank/NBFI will undertake REPO/REVERSE REPO transaction
without having entered into Master Repo Agreement with the
counter party, the same will attract penal action under the
provisions of BCO,1962.
All banks/NBFIs are therefore advised to ensure
the meticulous compliance with the instructions within extended
time positively.
Please acknowledge receipt.
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