The Head/Principal Offices of all
Authorized Dealers in Foreign Exchange
Dear
Sirs/Madam
Investment
Abroad by Locally Established Mutual Funds
In continuation of State Bank of Pakistan’s policy
towards liberalization of Foreign Exchange regime, it has
been decided to allow locally established mutual funds to
invest abroad for the purposes of diversification of their
asset classes / portfolio, to the extent of 30% of the aggregate
funds mobilized (including foreign currency funds), in permissible
categories subject to a cap of US$ 15 million at any given
time. The investment made abroad must strictly follow the
scope approved by Securities and Exchange Commission of
Pakistan (SECP) & subject to all other terms and conditions
as specified for the operations and investments abroad by
SECP.
Such
funds would need prior approval of State Bank of Pakistan.
In this regard, each interested locally established mutual
fund is required to apply, through an Authorized Dealer,
to Exchange Policy Department, State Bank of Pakistan by
providing details of the proposed operations alongwith the
related documents. Each request will be evaluated on a case
to case basis and will be responded accordingly.
Please
bring the above to the notice of all your constituents.