KARACHI (September 19 2003): State Bank of Pakistan (SBP) on Thursday explained procedures for retail and small institutions intending to invest in Pakistan Investment Bonds (PIBs).
According to SBP Circular No 13 issued on September 18, the facility is intended to accommodate retail and small institutional investors in Pakistan Investment Bonds.
According to its rule D-l of EDMD Circular 8, non-competitive bids are set at 10 per cent of the pre-announced auction target of PIB in each tenor for investors other than banks/DFIs/NBFIs through primary dealers.
SBP EDMD Circular No 13 dated 18th September, 2003,says:
“The following modus operandi has been laid down for tender/acceptance of non-competitive bids:
The non-competitive bids will be sent to the SBP separately from the normal bids before auction time with the name and amount of investors without quoting price through primary dealers.
Investors will be allowed to submit one bid in a single tenor.
The non-competitive bid (s) will be accepted at weighted average yield in each tenor.
In case of over-subscription, non-competitive bids will be accepted in order of the lowest to the highest amount”.