Instructions for Investment in Pakistan Banao
In terms of powers entrusted with State Bank of Pakistan (SBP) under Rule-13 of Pakistan Banao Certificates Rules, 2018 notified by Government of Pakistan (GOP) vide gazette notification no. S.R.O.97 (I)/2019 dated January 02, 2019 as amended vide gazette notification no. S.R.O.104 (I)/2019 dated January 29, 2019; and profit rates notified by the Ministry of Finance vide gazette notification no. S.R.O. 105(I)/2019 dated January 30, 2019(Annexure-A), detailed operational instructions for investment in Pakistan Banao Certificates (hereinafter referred as “certificates”) are issued as under:
A. PROCEDURE FOR INVESTMENT IN CERTIFICATES:
1) Certificate Offering and Subscription:
2) Investment and Remittance of Funds to SBP Account:
The certificates are scripless and are offered through a web-based portal accessible at the following link: https://www.pakistanbanaocertificates.gov.pk
- National Bank of Pakistan (“NBP”) will open the Investor Portfolio Securities (IPS) Account of the investor after verification and screening of investor’s credentials. In addition to opening the IPS account, NBP will provide services such as, collection of proceeds, distribution of periodic payments (profit and redemption including early redemption), and handling of investors queries with respect to investment in the certificates.
- The certificates will be issued through Subsidiary General Ledger Account (SGLA) and will be placed in a separate account of National Bank of Pakistan, namely, NBP PBC holding account.
- For investment in the certificates and opening of IPS account with NBP, the investor will electronically fill the registration form available on the PBC Web Portal by providing the necessary details including e-mail ID, name, identity document (NICOP/POC/CNIC), address, contact number, investment (amount & tenor) etc.
- Investment can be made in US Dollars five thousand (USD 5,000) and any integral multiples of US Dollars one thousand (USD 1,000) in excess thereof with no upper limit on the investment amount.
- The investor will be required to accept terms and conditions governing the certificates before submission of investment request (Annexure-B).
- Upon submission of investment request on PBC Web Portal, a unique reference number will be sent to investor’s registered e-mail address along with details for remittance of funds in SBP account.
- Funds should be remitted from investor’s personal bank account to the following SBP account maintained with NBP New York. Account details are as follows:
Name and Address of SBP's Correspondent Bank and Account Numbers for PBCs:
|Bank Name & Address:
||NATIONAL BANK OF PAKISTAN
NEW YORK, U.S.A
|Bank’s SWIFT Code:
Account Details for 3-Years Certificate:
||PBC Collection Account – 3 years
Account Details for 5-Years Certificate:
||PBC Collection Account – 5 years
Note: The Account details for 3-year and 5-year certificates have been revised on February 08, 2019. This revision will not have any implications for investments already remitted in SBP accounts provided before the revision. However, funds for investment in PBCs in future must be remitted as per the revised account details.
||STATE BANK OF PAKISTAN
||I.I. CHUNDRIGAR ROAD, KARACHI, PAKISTAN
|Beneficiary’s SWIFT Code:
- While remitting funds to SBP, the investor must provide unique reference number, Date of Birth and Place of Birth in the Field 70/ 72 of the SWIFT message.
- The investor should ensure that the amount submitted to SBP account is exactly equal to the amount of investment; while the charges, if any, should be paid separately from the investor’s personal account. In the case where submitted amount is less than the subscribed amount in the investment request; certificates will not be issued and the investor will be required to transfer the remaining amount. However, in case where submitted amount is in excess of the subscribed amount, only the subscribed amount would be invested.
Distinction between subscribed amount and submitted amount:
Subscribed Amount: Face Value/ Investment Amount of PBCs opted by Investor.
Submitted Amount: Actual amount received by NBP New York for investment.
3) Certificate Issuance:
Upon completion of verification of investor’s credentials and their screening by NBP and confirmation of receipt of funds in SBP PBCs account; scripless certificates will be issued to the investor. As part of electronic confirmation, following details will be confirmed at the investor’s registered e-mail address, and the investor’s account on the PBC Web Portal will be updated:
- IPS Account number of the investor; and
- Details of investment in the certificates including issue date, amount, maturity date, profit payment schedule, certificate number etc.
B. PROCEDURE OF PERIODIC PAYMENTS:
1. Periodic Profit Payments:
- Profit payments will be paid in USD on a semi-annual basis, determined from the date of issuance of the certificates. For example: if certificates are issued on 6th February the profit payments would be made on 6th August and on subsequent six-monthly dates accordingly.
- Profit in US Dollars will be remitted on the due profit payment date, to the investor’s nominated USD account, which can be in his/her country of residence or in Pakistan.
- A shut period of 5 working days ( in accordance with the Pakistan Standard Time) will be observed prior to the due date of periodic profit payment; therefore any request for encashment received during the period will be processed after the due date of semi-annual profit payment.
2. Premature Encashment:
- The Investor will have the option of Premature Encashment of his/her investment in either USD or PKR.
- The request for Premature Encashment would be submitted through the PBC Web Portal.
- Premature Encashment in PKR would be allowed anytime without any deduction.
- In case of premature encashment in PKR, the investor will provide his/her personal PKR bank account details on the PBC Web Portal. In this case, the principal will be paid in equivalent PKR at the weighted average customer PKR-US Dollar exchange rate (buying side) of the last working day falling before the premature encashment date.
- Premature Encashment in USD would be allowed subject to deductions, the rates of which have been notified by the Ministry of Finance vide gazette notification no. S.R.O. 106(I)/2019 dated January 30, 2019 (Annexure-C).
- The date of encashment will be the date on which the request for premature encashment is successfully made on the PBC Web Portal.
- After due verification of the request for premature encashment, the amount payable (net of deduction, if any) will be sent to the investor’s personal account.
3. Redemption at Maturity:
- Principal amount (in US Dollars) will be sent to the investor’s personal account (as designated on the PBC Web Portal) on the maturity date.
- In case the investor opts for redemption of principal payment in PKR at maturity, an additional amount equal to one percent will be paid to the investor with the last six monthly profit payment. For this purpose, the investor will provide details of personal PKR bank account on the PBC Web Portal. Redemption in PKR will be made at the ‘weighted average customer PKR-US Dollar exchange rate (buying side)’ issued by the State Bank of Pakistan of the last working day falling before maturity date.
- For redemption in PKR, the investor would have to submit the PKR redemption request at least ten (10) working days before the maturity date, using the Redemption tab on the PBC Web-Portal and provide the following information:
- Select Security for redemption in PKR:
- Account Title: [Must be investor’s personal account in Pakistan]
- Account No: [IBAN]
- Bank: [Name]
- Branch: [Name]
- The investor’s bank account would be credited, with either USD or PKR, as opted, with the maturity proceeds.
C. GENERAL INSTRUCTIONS:
- In case of a holiday on the periodic profit or principal payment date, the next working day falling after the holiday will be considered the periodic profit date/principal payment date. In such case, no profit will be payable for the period of the holidays.
- No profit will be payable for a broken six-monthly profit period i.e. if the certificate is encashed before the next profit payment date
or for holding the certificates beyond maturity.
- SBP, or the NBP, reserves the right to accept or reject the investment application if the investor does not comply with the necessary requirements under the rules or instructions.
- In case of death of an investor, the payment (principal and profit, if any), will be made to the legal heirs of the deceased investor in accordance with the succession certificate issued by a court of competent jurisdiction.
- In case the investor wishes to change account details and mailing address at any time, the request of the same may be submitted to NBP.
- The above instructions are subject to change from time to time.