MCB Bank Limited 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, Sukuks) 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 10% withholding tax is deducted at source by SBP upon maturity;
• Non-paper instrument;
• Negotiable instruments and have an active secondary market;
• Redemption of the face value upon maturity is guaranteed by GoP.

Government of Pakistan Ijarah Sukuk (GoP Ijarah Sukuk)

GoP Ijarah Sukuks are medium term Shariah compliant bonds issued by the Government of Pakistan and sold through SBP via periodic auctions. Salient features are:

• Currently being issued with 3 years to maturity;
• Denominated in multiples of PKR 100,000;
• Floating rate instrument;
• Coupon rate is linked to a weighted average of the 6 month T-Bill rate and is payable semiannually;
• A 10% withholding tax is deducted at source by SBP on the interim coupon payments made;
• Non-paper instrument;
• Negotiable instruments and are traded in the secondary market;
• Redemption of the face value upon maturity and periodic coupon payments are guaranteed by GoP.

How to invest in Government securities?

Customers interested in buying Government of Pakistan Securities, need to follow the steps stated below:

• In order to open an IPS account, customer must have a bank account with MCB Bank.
• After an account is opened with MCB Bank, the customers will submit a duly filled IPS Account Opening Form (Form “A”) along with the required documents to their account maintain branch (Please see the attached “List of Required Documents”),
• After the IPS account has been opened, the customers can invest in GoP securities through one of the following modes:
• Primary Market- Non Competitive Bid ( NCB ) through filling the Form “ B”;
• Secondary Market- through filling the “Form C”.
• After selection of desired investment mode, the customer will submit a duly filled respective form to his / her account maintaining branch.
• In case the customer wants to sell his / her holdings in GoP securities, he / she will contact Treasury Marketing Unit (TMU) through his / her account maintaining branch for a price quote. In case the customer accepts the price quoted by TMU, he / she will submit duly filled ‘Form C” to his / her account maintaining branch for further processing.
• Terms and conditions apply. (As mentioned in the IPS account opening form)