Financial Risk Manager

Ways of Financial and Risk Management

Investor Portfolio Securities Account (IPS)

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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.

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.

posted @ 11:19 PM,

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