2. No Investment Bank shall place any funds accepted under these rules in any activity other than those specified above. Those Investment Banks, who before the issuance of these guidelines have investment in other activities, at the maturity of all such investments divert their funds in the approved activities only.
   

4. GENERAL GUIDELINES:

While operating the Cash Management Account an Investment Bank shall observe the following.

1. An Investment Bank shall formulate policies duly approved by their Board of Directors for providing services of the CMA to clients.
2. An Investment Bank shall not enter into any transaction directly or indirectly with associated companies/undertakings. The words "associated companies/undertaking" shall have the same meaning as defined under Section 2(2) of the Companies Ordinance, 1984.
3. All transactions entered into by an Investment Bank for sale or purchase of securities shall be on market rate.
4. An Investment Bank shall not trade by selling short any security or enter into any transaction that results in forward buying under the CMA. However, Repo and Reverse Repo transactions will be permissible strictly in the manner and to the extent allowed by the State Bank of Pakistan from time to time.
5. The funds accepted by an Investment Bank under these rules shall not be entrusted to another Bank or NBFl for management or operation of the CMA, neither the CMA will manage the funds of the Investment Bank itself.
6. An Investment Bank shall not for the purpose of accepting any deposits under these rules, guarantee any pre-determined rate of return to its customers. They may, however, give indicative/expected rates based on past experience and future expectations.
7. The minimum period for which funds are to be accepted under the CMA shall not be less than six months.
8. An Investment Bank shall not, undertake any transaction between an investment held in the CMA and its own investment portfolio except, with the permission of the State bank of Pakistan.
9. An Investment Bank shall keep its own investment portfolio and the investment portfolio of the cash Management Account separate from each other in all respects.