Reference
is drawn to EDMD Circular No. 13 dated September 18, 2003
on the captioned subject and FSCD Circular No. 7 dated
June 6, 2009 regarding rules governing primary dealer
system. According to Para D-1 of rules governing PD system,
non-competitive bids are set at 15% of the pre-announced
auction target of MTBs/PIBs in each tenor for investors
other than banks/DFIs/NBFIs through primary dealers.
The
facility is intended to accommodate individual and small
institutional investors to invest directly in Government
of Pakistan issued Market Treasury Bills (MTBs) and Pakistan
Investment Bonds (PIBs). However, the quantum size of
non-competitive bids for one investor will be linked with
auction target i.e. 0.25% of the pre-announced auction
target or PKR 25.0 million, whichever is higher.
The
following modus-operandi has been laid down for tender/acceptance
of non-competitive bids:
• The non-competitive bid will be sent to SBP separately
from the normal bids before commencement of primary auction
time with the name and amount of investors without quoting
price through primary dealers.
• Investors will be allowed to submit one bid in
a single tenor, incase of submission of multiple bids
in one tenor by single investor, all such bids would be
treated as void.
• The non-competitive bid(s) will be accepted at
weighted average yield in each tenor as decided in the
primary auction.
• In case of over subscription, non-competitive
bids will be accepted in order of lowest to highest amount
or on pro-rata basis.
The format for submission of non-competitive bids is enclosed.
Please acknowledge receipt and bring these instructions
to the notice of all concerned.
TENDER
FORM
(NON COMPETITVE BID)
NAME OF PRIMARY DEALER ………………………………………………………………………………….
Dated:
…………………………….
The Director,
Domestic Markets &
Monetary Management Department (DMMD),
State Bank of Pakistan, Karachi
PLACEMENT
OF NON-COMPETITIVE BIDS FOR
MARKET TREASURY BILLS/PAKISTAN INVESTMENT BONDS
Pursuance to the tender notice
published by the State Bank of Pakistan on ……………….…...
for the sale of Market Treasury Bills/Pakistan Investment
Bonds we M/s ……………………………………..………….
apply for purchase of Market Treasury Bills/Pakistan Investment
Bonds as follows:
Maturity
Period: ……………………………..
Serial
No.
|
Name
of Investor/Purchaser |
Amount
of purchase in multiples of Rs. 100,000/- (Face
Value) |
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
|
Signature
(Name
of an authorised Signatory with Stamp)
Important
Note:
1. Separate tenders will be required for each maturity
of MTBs/PIBs.
2. Investor is allowed to submit one bid in a single tenor.