In Foreign Exchange,
OF FOREIGN CURRENCY
DEPOSITS BY THE INVESTMENT BANKS
has been decided to allow the Investment Banks to raise
foreign currency funds from abroad through issue of Certificates
of Investment, which shall bear maturity of not less than
3 months. The foreign exchange so raised will be required
to be surrendered immediately to State Bank of Pakistan.
In this connection, following instructions will be followed:-
Certificates will be registered and shall not be encashed
Certificates will be denominated in US $, £. Stg, Deutsche
Mark and Japanese Yen.
rate of profit will be indicated on the face of the
Certificates and will not exceed the rate of interest
applicable to similar deposits received by commercial
banks under the Foreign Currency Accounts Scheme.
foreign currency amounts representing sale proceeds
of the Certificates will be surrendered in State Bank
of Pakistans following accounts on the same day
on which the same are received by them:-
US.$ Account maintained with Federal Reserve Bank,New
£.Stg Account maintained with Bank of England.
D.M. Account maintained with National Bank of Pakistan,
J.Yen Account maintained with National Bank of Pakistan,
with the surrender of foreign currency amounts, the
Investment Bank will provide the details of the amount
surrendered, period for which the deposit has been taken,
interest rate, and amount of interest to the Chief Manager,
State Bank of Pakistan, Karachi/Lahore. The concerned
Chief Manager will pass on rupee equivalent of the amount
surrendered to the Investment Bank and will also book
forward cover for the amount surrendered plus profit
covering the period of deposit.
maturity of the Certificates, the Investment Bank will
make remittances of the amounts of principal/profit
by repurchasing the relevant amounts from State Bank
of Pakistan at the same exchange rate at which the rupee
equivalent was paid by the State Bank of Pakistan at
the time of surrender of foreign currency.
As mentioned in Para-1 above, State
Bank of Pakistan will pass on rupee equivalent of the amount
surrendered on the basis of Investment Banks letter.
In case of delayed surrender of the amount, State Bank of
Pakistan will recover penalty @ Rs.4.00 per Rs.10,000/-
per day from the Investment Bank.