Banks to register foreign shares to ease investment inflows

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KARACHI: The State Bank has authorised banks to register and transfer shares by local companies to non-residents -- a move to facilitate foreign investments in the country.

The bank issued a circular on Monday to explain to all authorised dealers (ADs) the process of designation and registration of shares/units in accordance with the Foreign Exchange Manual.

“In order to promote ease of doing business and facilitate foreign investors, it has been decided to delegate the functions of registration of shares/units on repatriable basis issued/transferred by local companies/funds to non-residents and designation of ADs for the purpose of remittance of dividend and disinvestment proceeds to non-resident shareholders/unit holders to ADs,” said the circular.

Furthermore, paperwork for registration of shares/units on repatriable basis has been simplified, it added.