Procedure of remittance to abroad

[Star]

A foreigner had not his Special Rupee Account or any other bank account in Pakistan. He opened an account with AMC in year 2005 for investment and sent remittance directly to Company Account.

Now, he has requested to redeem its units and to send his remittance to his account in UK directly.


Please tell whether;

<ul><li> </li><li> </li><li> </li></ul> The money can be received directly for investment purpose without opening a bank account in Pakistan?

<ul><li> </li><li> </li><li> </li></ul>What is the correct procedure to send him remittance?

Regards,


*

[faisal_desperado]

Dear Star,
There is no issue if the remittance has been received in company's account provided that purpose of remittance has been shown as "Investment" in form R, which is to be filled in by the banker, before crediting customer's(Company's) account.

As far as your second query is concerned, You may simply send him a cheque of the amount due. Which he would submit in his bank. However, it would take around 30-40 days to be credited in his account (or debited from your account).

An alternative way is also convenient that is called "Telegraphic Transfer" i.e. TT through banking channel, it would take around 24-48 hours to be remitted. However, since it is to be sent by a company from Pakistan, it would require permission from SBP, which your banker would arrange for you.

Best Regards,

Faisal

[Star]

Faisal,

Please go through this para of Forex Manual of SBP.

9.(a) Trading of Quoted Shares by Non-Residents.

(i) Non-residents are allowed to trade freely in the shares quoted on the Stock Exchanges in Pakistan. For this purpose the non-residents will be required to open "Special Convertible Rupee Account" with any Authorised Dealer in Pakistan. Such accounts can be fed by remittances from abroad or by transfer from a foreign currency account maintained by the non-resident investor in Pakistan. The balance available therein can be used for purchase of any share quoted on the Stock Exchange. Payment for such purchases may be debited to the account on production of stock broker's memo showing sale of shares to the account holder and disinvestments proceeds may be credited provided evidence of the sale price in the shape of stock broker's memo is produced. The fund available in such special accounts can be transferred outside Pakistan or credited to a foreign currency account maintained in Pakistan at any time without prior approval of the State Bank. These accounts can also be credited with dividend income. Transfers from one such account to another may also be made in case of transfer of shares between the two account-holders.

At all places the word, "will" or "shall" has been used, my understanding is that if the foreigner does not open Sp Rupee Account in Pakistan, he could not do trading in Pakistan.....................Is it like?


Regards,

*

[Star]

No one for further comments?