Please
refer to the instructions contained in para 3 of BPRD Circular
No. 34 dated October 20, 1999 and BPRD Circular No. 36 dated
October 27, 1999 in terms of which banks, for acquiring /
purchasing shares of NBFIs, including Modarabas and Leasing
Companies and NBFIs for acquiring / purchasing shares of private
banks/ other NBFIs including Modarabas and Leasing Companies
were, interalia, required to obtain prior clearance from the
State Bank of Pakistan.
It
has now been decided to allow banks to acquire / purchase
upto 5% of the total paid-up shares of any non-bank financial
institution without any prior approval from the State Bank
of Pakistan. Similarly any NBFI may acquire upto 5% of the
total paid-up shares of any commercial bank without any prior
approval from the State Bank of Pakistan.
In
case of acquisition / purchase above 5% of the total paid-up
shares, banks / NBFIs should approach the State Bank of Pakistan
for seeking its prior clearance as hithertofore.
All
other instructions on the subject shall, however, remain unchanged.
Please
acknowledge receipt.
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