All Authorized Dealers
In Foreign Exchange,

Dear Sirs,

ISSUE AND TRANSFER OF SECURITIES IN FAVOUR OF NON-RESIDENTS

In terms of the instructions laid down in F.E. Circular No.84 dated the 14^th May, 1991 (as amended from time to time), non-residents including overseas Pakistanis can make investment on reportable basis in shares of the companies quoted on Stock Exchange in Pakistan and un-listed Public Limited. Private Limited companies engaged in manufacturing against payment in foreign exchange. Remittance of dividends and dis-investment proceeds, net of tax if livable, can be made by the designated Authorized Dealers subject to prescribed drill.

2. It has been noticed that while reporting remittances of 'dis-investment proceeds' the Authorized Dealers do not furnish necessary details of the sale alongwith the relative form "M". The designated bank are, therefore, advised to ensure that the following information/documents are invariably furnished to the State Bank alongwith form "M" while reporting remittance of dis-investment proceeds in favour of non-residents in their monthly Exchange Returns:-

1. Name and address of the non-resident shareholders.

2. Name and Address of the company whose shares were sold by the non-resident beneficiary indicating whether it is a listed Public Limited Company or un-listed Public Limited/Private Limited Company engaged in manufacturing.

3. Name / address and residential status of the buyer of above shares.

4. Copy of Broker’s Memo showing, interalia, the details of shares sold by non-resident, date of sale, sale price of the shares etc; and practicing Chartered Accountant’s Certificate of break-up value where applicable.

5. In case the shares were sold to another non-resident on reportable basis, a copy of letter with which necessary Proceeds Realization Certificates and Annexure "A" were furnished to the State Bank.

6. A copy of the 'Designation Letter'.