Please
refer to SBP letter no.PDO/KH/1417/91 dated 28th April,
1991 containing instructions regarding IPS accounts and
the procedure relating to issue, management and repayment
of PIBs.
In order to consolidate & streamline
all instructions on the above and to broaden the investor
base of Govt. securities following instructions are being
implemented:
1. All primary dealers are required
to offer IPS accounts to their customers.
2. Any Scheduled Bank desirous
of offering IPS accounts to their customers must fulfill
the provisions of this circular.
3.
Opening of IPS account: Purpose of this
account will be the investment in the PKR denominated
GOP debt securities i.e. Pakistan Investment Bonds, Treasury
Bills, Ijarah Sukuks or any other such security issued
by State Bank of Pakistan from time to time on behalf
of Government of Pakistan. Any individual or entity which
has PKR denominated account with any scheduled Bank will
be eligible to open IPS account.
4.
Recording transaction in IPS account: Each Scheduled
Bank /Primary Dealer will devise their own internal guidelines
regarding IPS account opening and develop a system for
IPS account maintenance which at a minimum should have
the capacity to allot account numbers, record transactions
and generate activity statements. All Scheduled Banks
/Primary Dealers are advised to submit copy of internal
guidelines in this regard to this department before January
31, 2011.
5.
Reporting to Customer: Each Scheduled
Bank /Primary Dealer will provide activity statements
to IPS account holders on quarterly basis at minimum as
per format at Annexure-I.
6.
Reporting to SBP: Customer wise holding position
in each category of Government security must be reported
to Public Debt Office SBP (BSC) Karachi latest by 5th
of each month as per format at Annexure-II.
Each Scheduled Bank /Primary Dealer must ensure segregation
of the securities held in IPS accounts from its own holdings.
7. All Scheduled Banks /Primary
Dealers are advised to introduce and publicize the above
facility at branch level. Further, IPS maintenance charges
(if any) must be clearly defined in schedule of charges
of Scheduled Banks /Primary Dealers.
All other instructions on IPS accounts
will remain unchanged.
Please
acknowledge receipt.