960107
STATE BANK CIRCULARS RELATING TO NBFI's
NBFls Circular No. 2
dated the 7th January, 1996
Kindly refer to Rule 6 of the NBFIs Rules as modified from time to time. It has since been decided that each Non-Bank Financial Institution shall henceforth maintain with the State Bank of Pakistan a cash reserve of not less than 1% of Non Bank Financial Institution liabilities. To this end Rule 6 of the NBFI Rules is substituted as under:-
"Rule 6
6(1) (a) Not less than 15% of the NBFIs liabilities shall be invested in Government Securities. For this purpose liabilities shall not include NBFIs equity and borrowings from financial institutions including accruals thereon, lease key money, deferred taxation not payable within twelve months, dividend payable within two months, advance lease rentals and deposits from financial institutions.
(b) In addition to investment in Government Securities (not applicable in case of Modarabas if religious board does not permit investment in Government Securities e.g. Federal Investment Bonds). Non Bank Financial Institutions may also invest in Registered NIT Units or shares of listed companies for the purpose of maintaining 15% liquidity subject to the conditions that at any given time the amount invested in the shares of any one company shall not exceed the value of one minimum marketable lot as recognized in stock exchange or 1% of the liabilities as defined above, whichever is higher. The companies selected should have a stable share value above the par value during the one year period immediately preceding the date of making investment.
(c) Every NBFI shall, in addition to above said liquidity requirement, maintain with State Bank of Pakistan a balance the amount of which shall not at the close of business on any day be less than 1% of the total liabilities of such NBFI in Pakistan. Liabilities shall have the meaning as defined in Sub-Section (i) of Section 6."
