SBP is­sues fresh di­rec­tives to fa­cil­i­tate in­vest­ment in IPS

The Pak Banker - - Company& -

IS­LAM­ABAD: The State Bank of Pak­istan (SBP) has is­sued fresh in­struc­tions re­gard­ing In­vestor Port­fo­lio Se­cu­ri­ties Ac­count (IPS) mak­ing it manda­tory for pri­mary deal­ers to of­fer IPS ac­counts to in­vestors while other sched­uled banks can also of­fer such ac­counts to non-bank in­vestor base in­clud­ing in­di­vid­ual in­vestors.

This would widen the in­vestor base by fa­cil­i­tat­ing in­vest­ment by the non-bank­ing in­sti­tu­tions and gen­eral pub­lic in the govern­ment of Pak­istan (GoP) mar­ketable se­cu­ri­ties, says a cir­cu­lar is­sued by the SBP.

Ac­cord­ing to a state­ment, all sched­uled banks have been ad­vised through a Cir­cu­lar (FSCD Cir­cu­lar No. 18), which was is­sued on Satur­day, to in­tro­duce IPS ac­count open­ing ser­vice to their cus­tomers and pub­li­cize the same at branch level. The IPS ac­counts en­able cus­tomers to main­tain cus­tody of their in­vest­ing se­cu­ri­ties with the pri­mary deal­ers & banks and also fa­cil­i­tate the trad­ing of these se­cu­ri­ties with easy trans­fers to other ac­counts.

The cur­rent range of GoP mar­ketable se­cu­ri­ties in­cludes Trea­sury Bills, Pak­istan In­vest­ment Bonds, and Ijarah Sukuk. With re­gard to open­ing of IPS ac­count, the Cir­cu­lar said any in­di­vid­ual or en­tity which has PKR de­nom­i­nated ac­count with any sched­uled bank will be el­i­gi­ble to open IPS ac­count.

The Cir­cu­lar said that each sched­uled bank/pri­mary dealer will de­vise its 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 ac­tiv­ity state­ments.

All sched­uled banks/pri­mary deal­ers are ad­vised to sub­mit copy of in­ter­nal guide­lines in this re­gard to the Fi­nan­cial Mar­kets Strat­egy & Con­duct Depart­ment (FSCD) of the State Bank be­fore Jan­uary 31, 2011.

More­over, each sched­uled bank /pri­mary dealer will pro­vide ac­tiv­ity state­ments to IPS ac­count hold­ers on quar­terly ba­sis at min­i­mum as per the pre­scribed for­mat, it said and added that the 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 the pre­scribed for­mat. Each sched­uled bank /pri­mary dealer must en­sure seg­re­ga­tion of the se­cu­ri­ties held in IPS ac­counts from its own hold­ings. -PB News

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