Bid option in PIBs available to retail investors: SBP

KARACHI (September 26 2003): The non-competitive bid option is available to the retail investors only and commercial banks, DFIs and non-banking financial institutions do not enjoy the facility of non-competitive bid option, said a release issued by the State Bank of Pakistan on Thursday.

Previously, the retail investors were unable to access the Pakistan Investment Bonds (PIBs), as they were not aware of its pricing mechanism.

Therefore, non-competitive bid option will provide a great opportunity to retail investors to invest in PIBs, said the release.

The retail investors may submit their bid with a ceiling of Rs 10 million to the State Bank before the auction date to be held on October 4 next through primary dealers.

The release says one investor can put in only one bid in a single tenor, while the bids may be put with the amount mentioned, but without indicating any price against three-year, five-year and 10-year tenor, separately.

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