ICBC is offering Investor Portfolio Securities accounts (IPS) to its customers.
IPS Accounts are custodial accounts maintained for buying and holding Government Securities (T-Bills, PIBs,) on behalf of their customers.
The types of Government securities that customers can invest through IPS account are:
Treasury Bills (T-Bills) Treasury bills are zero coupon instruments issued by the Government of Pakistan and sold through the SBP via fortnightly auctions. Salient features are: ●Issued in tenors of 3, 6 and 12 months; ●Denominated in multiples of PKR 5,000; ●A 15% withholding tax is deducted at source by SBP upon maturity for filer and 30% for non-filer; ●Negotiable instruments and have an active secondary market; ●Redemption of the face value upon maturity is guaranteed by Government of Pakistan.
Pakistan Investment Bonds (PIBs) ●PIBs are long-term bonds issued by the Government of Pakistan and sold through SBP via periodic auctions. Salient features are: ●Issued in fixed and floating rates ●Floating instrument available in 2,3,5 and 10 years with different structure ●Issued in fixed 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; ●A 15% withholding tax is deducted at source by SBP on the interim coupon payments made and 30% for non-filer; ●Negotiable instruments and are traded in the secondary market; ●Redemption of the face value upon maturity and periodic coupon payments are guaranteed by Government of Pakistan.
Key Benefits ●Accepted as collateral ●Highly liquid and tradable security in secondary market ●Easy Process of Investment: Local and Foreign investors can easily invest in the Government securities by opening an IPS account.
|