Foreign shareholdings in local cos: SBP rolls out ‘NSRS’ to automate reporting

KARACHI: While launching a new Non-Resident Shareholding Registration System (NSRS) to streamline and automate the recording of foreign shareholding in locally incorporated companies, the State Bank of Pakistan (SBP) directed banks to submit 20 years of legacy data related to dividend and disinvestment transactions.

According to the SBP, the new system NSRS has been developed in line with SBP’s strategic objective to enhance the effectiveness of the financial system and simplify record-keeping of non-resident investment transactions as well as facilitating the subsequent repatriation of dividends and disinvestment proceeds.

The NSRS framework will include four Data File Structures (DFS), covering key areas of foreign investment operations. These include designation of bank, share issuance, dividend repatriation, and share disinvestment transactions conducted through Authorized Dealers (ADs).

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Under the new mechanism, all authorized banks are required to submit monthly reports covering designation and share registration activities, along with dividend and disinvestment transactions. Reporting must be completed by the 5th working day of the following month through the Data Acquisition Portal (DAP). The first submission will cover transactions for July 2026 and must be filed by the 5th working day of August 2026.

The SBP has also directed banks to submit historical or legacy data related to dividend and disinvestment transactions in three phases.

Under the phase-I will cover data from January 1, 2021 to June 30, 2026, to be submitted within four months of the circular’s issuance. Phase-II will include data from January 1, 2016 to December 31, 2020, to be submitted within six months. In addition, Phase-III will cover data from January 1, 2006 to December 31, 2015, with a submission deadline of one year.

After completion of all phases, banks will be required to submit a compliance report within 15 days, certified by their Group Head Compliance, confirming accuracy and completeness of the data.

The SBP emphasized that it is the responsibility of the relevant Group Head and Group Head Compliance of each bank to ensure accurate reporting and strict compliance within the given timelines.

Banks have also been instructed to inform all concerned stakeholders and ensure full implementation of the new reporting framework.

Copyright Business Recorder, 2026