Alternative Investment Fund

Non-banking monetary establishments (FI) will currently invest within the non-listed special purpose funds (e.g. different Investment Fund, Special Purpose Vehicle, or the other similar fund) that ar registered with East Pakistan Securities and Exchange Commission (BSEC). Through DFIM Circular No.04 dated thirty March 2016, East Pakistan Bank permits such investment.

On November twenty four, 2015, East Pakistan Bank issued an analogous circular permitting the industrial banks to speculate in such funds.

FI ought to follow the subsequent guideline whereas finance within the non-listed special purpose funds:

1. the mixture investment in such funds created by any FI shall not exceed fifty p.c of its paid up capital.

2. The investment in such one fund created by any FI shall not exceed ten p.c of its paid up capital or twenty p.c of that exact fund, whichever is lower.

3. The investment call in such funds should be approved by Board of administrators of FIs and before creating commitment to speculate FIs shall acquire approval from East Pakistan Bank (BB). during this affiliation, FIs shall submit their latest data on capital, liquidity, quality and amount of assets and liabilities beside all the data associated with higher than mentioned funds (including the declaration of clause 4) to pellet.

4. The trustee of the fund shall declare that:

a. No investment shall be created to get the share/debenture/bond or the other instruments of capitalist FI and its connected party by such funds;

b. The fund has no monetary claim over any bank and FI and no investment shall be created that will produce such claim over any bank or FI in future.

5. Investment in such funds shall be excluded from the limit mentioned in section sixteen of the monetary establishments Act, 1993.