Please refer to BSD Circulars No. 10 and 14 dated July 13, 2004 and September 24, 2004 respectively on the captioned subject.

2)         It is clarified that Banks / DFIs may reclassify their investments in equities, TFCs and Sukuks, categorized as Held for Trading (HFT) to Available for Sale (AFS) or Held to Maturity (HTM) as per guidelines mentioned in Para 4 of BSD Circular No. 10 dated July 13, 2004, treating prevalent market conditions as exceptional circumstances.

3)         BSD Circular No. 14 dated September 24, 2004 states that investment securities once classified into HTM category cannot be reclassified. However, keeping in view the prevalent market situation, Banks and DFIs may reclassify the securities described in Para 2 above, after getting prior approval from State Bank of Pakistan.

4)         All other instructions on subject remain unchanged.

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