The State Bank on Monday issued instructions for bankers to accept subscription applications of Kot Addu Power Company (Kapco) from prospective investors who are not their account holders. "We have received a number of queries from various quarters relating to the instructions issued to banks vide BPD Circular No 24 of 2004 dated 20th July 2004," said the SBP circular on Monday.

"These instructions require the bankers to the issue to accept duly completed subscription applications (ie, accompanied with pay order/demand draft in favour of the issuer company and copy of CNIC of the applicant) from prospective investors, who are not their account holders," said the circular.

The instructions were issued to facilitate the potential investors who have accounts in banks other than bankers to the issue.

The SBP clarified that the bankers to the issue will accept only those subscription applications where the applicant is either their own account holder or account holder of any other bank in Pakistan.

Banks have been requested to ensure compliance of the instructions contained in BPD Circular No 24 of 2004 by advising their branches to accept and process all duly completed subscription applications.

Copyright Business Recorder, 2005