State Bank enhances maximum holding limit of GOP IjaraSukuk for Islamic banks

Karachi –– State Bank of Pakistan increased maximum holding limit of GOP IjaraSukuk for Islamic banks and conventional banks having Islamic banking branches to 35% of issue amount with immediate effect. Earlier, it was 25% for all banks.

A SBP circular on April 22, 2011 said: “In order to ensure that there is no over concentration, maximum holding limit of GOP IjaraSukuk for commercial banks will be as under:  i. For Islamic Banks holding limit will be 35% of issue amount. ii. For Conventional Banks, with Islamic Banking Branches, holding limit will be 35% of issue amount.

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 issue amount. iv. Adherence to above holding limit by issue has to be complied as of close of any business day.” Circular said above amended holding limit will be applicable to all issues of GOP IjaraSukuk.

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