The State Bank of Pakistan has increased the maximum holding limit of GoP Ijara Sukuk for Islamic and conventional banks having Islamic banking branches to 35 percent of the issue amount with immediate effect. Earlier, this maximum holding limit for all banks was 25 percent.
The central banks said to ensure that there is no over-concentration, maximum holding limit of GoP Ijara Sukuk for commercial banks will be as under:
i. For Islamic banks holding limit will be 35 percent of the issue amount.
ii. For conventional banks, with Islamic banking branches, holding limit will be 35 percent of the 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 percent of issue amount.
iv. Adherence to the above holding limit by issue has to be complied as of close of any business day." The SBP's DMMD circular No 2 dated 22nd April 2011 said that the above-amended holding limit will be applicable to all issues of GoP Ijara Sukuk.
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