Banks Ordered to Remove Limits on Fund Transfers for e-IPO Transactions

Pakistan Stock Exchange (PSX) and Central Depository Company of Pakistan Limited (CDC), under the aegis of and in close coordination with the Securities & Exchange Commission of Pakistan (SECP) and State Bank of Pakistan (SBP), are working towards facilitating investors participating in the Initial Public Offerings to have a seamless experience. As part of the initiative, 1Link with the support of SBP has instructed all its member banks to remove the limits on transfer of funds for transactions executed through e-IPO platforms. Previously such electronic payments were subject to transactional limits imposed by the Banks. A Memo to this effect was issued by 1Link recently whereby all banks were instructed to remove the transactional capping for EIPOs. This step will enable investors to invest in an IPO through the EIPO facility without being restricted by any transactional capping or limit. The EIPO system is utilized to provide an end-to-end digitized experience to investors participating in the IPO through the EIPO platforms. Speaking about the removal of transactional capping for EIPO transactions, CEO PSX, stated, “Pakistan Stock Exchange continuously endeavors to facilitate investors, market participants, and stakeholders. It is in line with this ethos which PSX follows that today, with the cooperation of the CDC, and the support of the SECP as well as SBP, we have enabled removal of capping on transaction limits for investors utilizing the EIPO platforms”.