Loan against shares: SBP directive to banks

The State Bank of Pakistan has instructed banks to make sure that loan against shares is absolutely on the name of beneficiary. The SBP has issued BPRD Circular Letter No 15 to the president and chief executives of all banks and has instructed that banks/DFIs that while accepting shares as security.
They must ensure that the beneficiary of the facility is the absolute owner of the shares so pledged or has the necessary mandate to pledge the shares as security for availing financing facility from banks/DFIs.