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951214

STATE BANK OF PAKISTAN NBFIs REGULATION AND SUPERVISION DEPARTMENT CENTRAL DIRECTORATE

NBFIs Circular No. 12
14^th December, 1995

Chief Executives of All NBFIs,

Dear Sir,
Please refer to NBFIs Circular No. 1 dated the 5^th December, 1991 as modified from time to time. The existing Rule 9 of the Rules of Business for NBFIs is substituted as under:-

Rule 9) Limit on NBFIs Exposure:

i) Total exposure of a NBFI to a single borrowing entity or group shall not exceed 20% of total assets of the NBFIs. For financing of power projects, locomotives and fertilizer projects also total exposure shall not exceed 20% of the total assets of the NBFIs. In arriving at per party exposure, 90% of a) certificates of Deposit/Certificates of Investment of the borrowing entity or group, under lein with the NBFI; and b) face value of FIBs lodged by the borrowing entity or group as collateral shall be deducted.

ii) The above amendment shall come into force with immediate effect.

Please acknowledge receipt.

Yours faithfully,

(SHOAIB AHMAD)
Joint Director

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