Soneri Bank Limited
اردو

IPS Account

Soneri Bank Limited (SNBL) is offering Investor Portfolio Securities Account (IPS) to its account holders, this is a custodial account, maintained for buying and holding Government Securities (T-Bills, PIBs, Sukuks) on behalf of our customers. The customer is the legal owner of government securities held in the IPS accounts, in accordance with the instructions of State Bank of Pakistan.

Opening of IPS Accounts

SNBL customers who intend to open IPS accounts are required to submit duly filled IPS account opening request as per Annexure I, along with the appended documents at their respective branch. The request to open an IPS account must be in conformity with the authority given in the customer’s regular chequing account maintained with Soneri Bank;

Entity

  • Attested Copy of Board/Trust Resolution under Company Seal
  • List of authorized signatories and their CNICs
  • Tax Exemption Certificate, if applicable

Partnership

  • List of authorized signatories and their CNICs
  • Tax Exemption Certificate, if applicable

Individuals

  • Copy of CNIC and NTN certificate

Key Features

  • Non-paper based instruments
  • Negotiable instruments with active secondary market
  • Payments are guaranteed by Government of Pakistan

Types of Government Securities

Treasury Bills (T-Bills)
Treasury bills are zero coupon instruments issued by the Government of Pakistan and sold through State Bank of Pakistan via fortnightly auctions. Salient features are;

  • Issued in tenors of 3, 6 and 12 months
  • Denominated in multiples of PKR 5,000/-
  • It is a discount based instrument (purchase price will always be less than PKR 100/-)
  • Redemption of the face value upon maturity is guaranteed by the Government of Pakistan

Pakistan Investment Bonds (PIBs)
PIBs are long-term bonds issued by the Government of Pakistan and sold through State Bank of Pakistan via periodic auctions. Salient features are;

  • Issued in tenors of 3, 5, 10, 15, 20 and 30 years
  • Denominated in multiples of PKR 100,000/-
  • PIBs of different tenors bear different coupon rates which are payable semi-annually
  • It may be issued on both discount or premium basis (purchase price may be less than or more than PKR 100/-)
  • Redemption of the face value upon maturity and periodic coupon payments

Government of Pakistan Ijarah Sukuk
Ijarah Sukuks are medium term Shari’ah compliant bonds issued by the Government of Pakistan and sold through State Bank of Pakistan via periodic auctions. Salient features are;

  • Currently being issued with 5 years to maturity
  • Denominated in multiples of PKR 100,000/-
  • Floating rate instrument (VRR – Variable Rate of Return); however, now it is also available in FRR -Fixed Rate of Return). FRR may be issued on premium or discount basis
  • Coupon rates are linked to weighted average of the 6-month T-Bill rate and is payable semi-annually
  • The face value redemption is upon maturity and coupon payments are periodically i.e. semi-annually

How to participate in Investment?

IPS account holders are required to submit request at their branch on Annexure II for the scheduled auction, at least 2 working days prior to the auction date which is available at SBP official website.

Investment through secondary market:
IPS account holders are required to submit the request at their branch on Annexure – III for the purchase of government securities from secondary market through Soneri Bank Limited. If the customer directly purchases the securities from another investor, its intimation must be submitted to Soneri Bank on Annexure –IV.

Disinvestment through secondary market:
IPS account holders are required to submit request at their branch on Annexure – V for the sale of government securities to secondary market through Soneri Bank Limited. If the customer directly sells the securities to another investor, its intimation must be submitted to Soneri Bank on Annexure – VI.

Withholding Tax

  • Investment in these government securities through IPS accounts are subject to mandatory government taxes’ recovery
  • On maturity, State Bank of Pakistan will deduct Withholding Tax on profit/interest as per defined tax rates
  • Deduction of Withholding Tax will be borne by the customer holding the security at the time of maturity

Bank Charges

Service charges for IPS accounts are applicable as per prevailing Soneri Bank’s Schedule of Charges (SOC), for details and existing charges, please refer to our SOC available at www.soneribank.com.