All
Authorized Dealers
In Foreign Exchange,
Dear
Sirs,
ISSUE
AND TRANSFER OF SECURITIES IN FAVOUR OF NON-RESIDENTS
Authorized
Dealers are aware that investment on reportable basis ion
the shares of the companies quoted on Stock Exchanges in
Pakistan by non-residents (including overseas Pakistanis)
is permissible against payment in foreign exchange through
normal banking channels.
2. It has now been decided
to permit investment by non-residents (including overseas
Pakistanis) on reportable basis in corporate debt instruments
viz. Participation Term Certificates (PTCs), Term Finance
Certificates (TFCs) etc.
3. Accordingly, the following
is added as sub-para (g) under
para 6, Chapter
XX of Foreign Exchange Manual (7th Edition-1992):-
"(g)
Issue/Transfer of registered corporate debt instruments
(viz. Participation Term Certificates, Term Finance
Certificates etc.) in favour of non-residents (including
overseas Pakistanis) on the basis of repatriation
of capital & profits subject to the condition
that the issue/purchase price is paid in foreign exchange
either as a remittance through banking channels or
out of foreign currency account maintained with a
bank in Pakistan. Remittance of profit and sale/maturity
proceeds will be allowed by the State Bank on submission
of evidence of inward remittance or of payment out
of Foreign Currency Account."
