Karachi March 9 2022: The investment of banks and DFIs, in aggregate, in shares of any single company shall be lower of 5 percent of Tier-I Capital of the bank/DFI reported in preceding half-yearly reviewed / annual audited financial statements or 10 percent of paid-up shares of Investee Company.
The above limits shall also be applicable to investment of banks/DFIs in units of all types of mutual funds.
The investment of banks/DFIs, in aggregate, in shares/units of any single startup (including Fintech Startups) or any single Real Estate Investment Trust (REIT) shall be lower of 5 percent of Tier-I Capital of the bank/DFI reported in preceding half-yearly reviewed / annual audited financial statements or Rs. 500 million for startups.
For Reit Banks and DFIs investment shall be lower of 5 percent of Tier-I Capital of the bank/DFI reported in preceding half-yearly reviewed / annual audited financial statements or 15 percent of paid up shares of Investee Company.
The banks/DFIs shall have an approved policy incorporating therein an internal evaluation process for an objective analysis and assessment of their equity investment decisions, which must consider factors including, inter alia, financial standing of the bank/DFI, aggregate investment portfolio, risk appetite and expected return, level of expertise, business strategy including exit strategy etc.
