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June 25, 2008
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Wednesday
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Jamadi-us-Sani 20, 1429
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Banks asked to accept shares as security
By Our Staff Reporter
KARACHI, June 24: The State Bank of Pakistan has asked banks and development finance institutions (DFIs) to accept shares as security only from their absolute owners.
“Banks and DFIs are advised that while accepting shares as security, they must ensure that the beneficiary of the facility is absolute owner of the shares so pledged or has the necessary mandate to pledge the shares as security for availing financing facility from the bank and DFI,” said an SBP circular on Tuesday.
Banks have been facing problem of double pledging of shares to get financing from two banks at same number of shares.
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