SBP revises holding limit rule for GOP Ijara Sukuk

July 28, 2020 (MLN): In order to rationalize the holding limit rule, the State Bank of Pakistan has decided that the issue wise holding Limits for GOP Ijara Sukuk will be linked to cumulative target (as per auction calendar) or issued amount whichever is higher in each tenor.

As per the revised instructions, the maximum holding limit of GOP Ijara Sukuk for commercial banks to prevent over concentration, will be as under:

i. For Islamic Banks, holding limit will be 35% of the cumulative target or issued amount, whichever is higher.

ii. For Conventional Banks with Islamic Banking Branches, holding limit will be 35% of the cumulative target or issued amount, whichever is higher. The holding restriction will be applied on a combined / amalgamated basis for commercial banks with Islamic Banking Branches.

iii. For Conventional Banks with no Islamic Banking Branches, holding limit will be 25% of the cumulative target or issued amount, whichever is higher.

iv. Adherence to the above holding limit by issue has to be complied as of close of any business day.”

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