UPDATED F.E. CIRCULAR

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 if the shares are not quoted on Stock Exchanges.

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 unquoted 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'.

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