In
exercise of the powers conferred under Section 41 of the Banking
Companies Ordinance, 1962, the State Bank of Pakistan is pleased
to make the following rules to operate the Cash Management
Account (CMA) by the Investment Banks.
1.
SHORT TITLE AND EXTENT:
-
These
rules for operating the Cash Management Account (CMA)
shall be called the Cash Management Account Rules and
shall apply to Investment Banks.
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All
Investment Banks operating the CMA activities shall
follow the guidelines laid down by the State Bank of
Pakistan from time to time.
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An
Investment Bank, which is not operating the CMA at present.
Shall, before undertaking operation under these rules,
intimate in writing to the State Bank of Pakistan.
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An
Investment Bank already operating under the CMA shall
submit information as of December 31, 1999 of the CMAs
already managed by them in the format prescribed in
Annexure "A" to the State Bank of Pakistan
by March 07, 2000.
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TERMS
& CONDITIONS:
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An
Investment Bank shall, deploy the funds accepted, in
approved activities under these rules, acting as an
agent of the customer by either:
-
exercising
its own discretion on behalf of his customer, if
authorised by the client in writing to do so (which
shall be referred to as Discretionary Accounts),
or
-
operate
solely at the discretion of his customer (which
shall be referred to as Non-Discretionary Accounts).
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