Circulars/Notifications - Banking Supervision Department  
 BPRD Circular No.06
February 23, 2000  

The Chief Executives,
All Investment Banks.

Dear Sirs,

CASH MANAGEMENT ACCOUNT (CMA) RULES

 

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:

    1. These rules for operating the Cash Management Account (CMA) shall be called the Cash Management Account Rules and shall apply to Investment Banks.

    2. All Investment Banks operating the CMA activities shall follow the guidelines laid down by the State Bank of Pakistan from time to time.

    3. 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.

    4. An Investment Bank already operating under the CMA shall submit information as of December 31, 1999 of the CMA’s already managed by them in the format prescribed in Annexure "A" to the State Bank of Pakistan by March 07, 2000.

  1. TERMS & CONDITIONS:

    1. An Investment Bank shall, deploy the funds accepted, in approved activities under these rules, acting as an agent of the customer by either:

 

    1. 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

    2. operate solely at the discretion of his customer (which shall be referred to as Non-Discretionary Accounts).



 

       
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