F.E.
Circular No. 44 |
November 13, 1995 |
All
Authorized Dealers
In Foreign Exchange,
Dear
Sirs,
Enquiries
have been received regarding the rate of exchange to be
applied for determining the value of shares to be issued
to foreign sponsors in cases other than the one mentioned
in sub-Para
(a) of paragraph
7, Chapter
XX of the Foreign Exchange Manual. The following clarifications
are issued:-
-
In
case the foreign sponsor remits his contribution towards
equity to Pakistan for credit to the companys
Rupee account, shares may be issued for the rupee equivalent
paid by the Authorized Dealer.
-
In
case the equity of foreign sponsors is paid into a foreign
currency account of the company maintained either in
Pakistan or abroad with the State Bank of Pakistan or
abroad with the State Bank of Pakistans approval,
shares can be issued as soon as the amount is paid,
applying Authorized Dealers TT Clean buying rate
for public on the date on which the amount is credited
to the companys account.
-
In
case of foreign sponsors contribution in the shape
of plant and machinery shares may be issued after the
exchange entitlement certificate has been obtained,
which will be issued on submission of import documents
viz. Bills of Entry, Invoices, Import Licenses etc.
in original through Authorized Dealer. (The rate of
exchange applicable in such cases is the average of
Authorized Dealers TT Clean Buying and Selling
Rate for public prevailing on the date(s) of filing
of Bill (s) of Entry (for Bond) with the Customs)
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