The Presidents/Chief Executives of all

Authorized Dealers in Foreign Exchange

Dear Sirs/Madam,

Movement of Funds from Special Convertible Rupee Account & Pledge of Securities of Foreign Investors as Margin of Ready / Cash Market Transactions

1. Attention of the Authorized Dealers (ADs) is invited to the instructions contained in paras 9 & 10 of Chapter 20 of Foreign Exchange Manual-2016 regarding trading of quoted shares by non-residents through Special Convertible Rupee Account (SCRA).
2. It has been decided to allow movement of funds from SCRA towards margin requirement for Ready/Cash Market transactions in Pakistan Stock Exchange. Accordingly, the words “Futures or Future Contract” wherever appearing in para 9(A) ibid shall stand replaced with words “Ready/Cash/Futures”.
3. Further, in order to cater for pledge of securities as an alternative to cash margin, following instructions shall be inserted at the end of para 10(i) ibid:

“The securities available in account/sub-account may be pledged in favor of National Clearing Company of Pakistan Ltd. in case of non-availability of funds in SCRA to meet margin requirements against purchase/sale transactions of non-resident investors in ready/cash market till settlement of respective transaction”.

4. ADs are advised to bring the above instructions to the notice of all their constituents.