The State Bank of Pakistan (SBP) has sought more documents and information regarding the export of securities to non-resident investors for their registration with the SBP. As per instructions contained in Para 7(vi) Chapter 20 of the Foreign Exchange Manual-2016, resident entities are required to intimate ADs regarding export of securities (issued/transferred) to non-residents, for registration with SBP.
According to a circular issued on Friday, in order to enhance due diligence with respect to export of securities to non-resident investors, SBP has advised ADs to submit the following documents/information with regard to non-resident investors (where applicable) in addition to the existing requirements:
a. Formal Share Purchase Agreement or equivalent between the Investor and Investee. b. Business profile containing ownership, organisation/group, locations, markets and products. c. Promoters'/ Directors' names, addresses, national ID/passport numbers and country of domicile. d. Certificate of incorporation or equivalent issued/acknowledged by the relevant Authority. e. Memorandum and Articles of Association or equivalent registered with the relevant Authority. f. Annual Audited Financial Statements with Auditors' report and notes thereon for the last year. g. Pattern of Shareholders (name, national identity number and shares held) or equivalent. h. Related Party details including beneficial ownership with the aforementioned documents, if any.
Furthermore, ADs shall maintain centralised record/data of all such cases as well as securities of non-residents already registered on the aforementioned parameters along with the details of Investment/dividend repatriated and update the same for on-site inspection /off-site monitoring by SBP. ADs have been advised to bring the above instructions to the notice of all their constituents.