The Presidents/ Chief Executives,

All Banks/ DFIs

Dear Sir/Madam,

AMENDMENT IN REGULATION R-6 OF PRUDENTIAL REGULATIONS FOR CORPORATE / COMMERCIAL BANKING

1. Please refer to BPRD Circular No. 06 of 2014 regarding revised Prudential Regulations (PRs) for Corporate / Commercial Banking.
2. Based on the representation of stakeholders, the following amendments in Regulation R-6 of the PRs for Corporate/Commercial Banking have been made:

“Para 1 A (ii) - Banks/DFIs will obtain prior approval from the State Bank for purchasing shares of a company exceeding, in aggregate, 10% of the capital of Investee Company or 5% of their paid-up capital, whichever is lower. However, in case of investment in REIT, the limits shall be 15% of paid up capital of Investee Company or 5% of equity of a bank/DFI, whichever is lower. These limits (other than investment in REITs) shall be calculated as under,"

"Para 1 B (v) - Aggregate investment limit in units of REIT shall be 15% of equity of the bank/DFI, exclusive of the above aggregate limits."

"Para 5: The banks/DFIs shall not:
(d) – take exposure on any company against the security of shares/TFC/Sukuk issued by that company.”

3. All other instructions on the subject shall, however, remain unchanged.
4. Please acknowledge receipt.