Circulars/Notifications - Exchange Policy Department  
 FE Circular No. 03 of 2020

August 05, 2020

The Presidents/Chief Executives of all
Authorized Dealers in Foreign Exchange

Dear Sir(s) / Madam,

Procedure for Trading of Quoted Shares through NRP Rupee Value Account (NRVA)

        Attention of the Authorized Dealers (ADs) is invited to the instructions contained in Para 8, Chapter 8 of Foreign Exchange Manual in terms of which Non-Resident Pakistanis (NRPs) have been allowed, inter alia, for investment in shares quoted at stock exchange through “NRP Rupee Value Account” (NRVA).


In order to provide a mechanism for trading in the shares quoted on Stock Exchange(s) in Pakistan through NRVA, the following instructions have been incorporated in Foreign Exchange Manual, as Para 9(C) of Chapter 20:

New Para 9(C) Trading of Quoted Shares by Non-Residents through NRP Rupee Value Account (NRVA) has been added as under:


In terms of Para 8 of Chapter 8 of Foreign Exchange Manual, Non-Resident Pakistanis (NRPs) have been allowed, inter alia, for investment in the shares quoted on the Stock Exchange(s) in Pakistan by using funds available in their “NRP Rupee Value Account (NRVA)” opened with any ADs in Pakistan. For this purpose, the ADs may use the procedure as explained in Para 9(A) above. However, additionally, ADs may allow the NRPs to use the facilities offered by Central Depository Company (CDC) for custody and clearing of such investment provided that the NRP investor specifically requests for such arrangements. In this regard, ADs are allowed to:

  1. Transfer the funds, available in NRVA of the investor, to the bank account maintained by CDC, for the purchase of any quoted shares on the request of NRP investor. The CDC will provide the stock broker's memo, showing sale of shares to the account holder, to the AD once the purchase transaction is completed.

  2. Credit the un-utilized funds, received from CDC, into NRVA of the investor.

  3. Credit the amount of dividend income in the NRVA of the investor, received from the shares held by the investor, through CDC. CDC will provide evidence of receipt of dividend from the company.

  4. Credit the amount of disinvestment proceeds in the NRVA of the investor, received from CDC on account of sale of quoted shares earlier purchased by non-resident through NRVA or bonus/right shares issued thereon. CDC will provide evidence of the sale price in the shape of stock broker's memo.


AD will maintain the complete reconciliation of amount transferred/received to/from CDC, shares purchased/sold by the investor there against, and ensure the compliance of all related foreign exchange regulations.

3. ADs are advised to bring the above instructions to the knowledge of all their constituents for meticulous compliance.

Yours truly,


(Arshad Mehmood Bhatti)


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