issued to sponsors of microfinance banks will be deposited in the CDC,” said a circular issued by the SBP on Saturday.

All sponsor shares and subsequent right and bonus shares, including those deposited with SBP Banking Services Corporation (BSC), will be deposited in a blocked account with the CDC.

No withdrawal of the sponsor shares from CDC blocked account would be allowed without prior written permission of the SBP.

Blocked account should be opened by the sponsor shareholders of MFBs exclusively for deposit of the sponsor shares and subsequently right and bonus shares issued thereon.

Charges for opening and operating of the blocked account with CDC will be borne by the sponsor shareholders.

Sponsor shares mean five per cent or more paid-up shares of an MFB, acquired by a person individually or in concert with his family members (including his spouse, lineal ascendants and descendents and dependents brothers and sisters), group companies, subsidiaries, and affiliates or associates.

Sponsor shareholders mean all those shareholders of an MFB holding sponsor shares. The members of the board of directors of an MFB holding sponsor shares will be considered sponsor directors.

These instructions will not be applicable to the shareholding of federal and provincial governments in MFBs.

Source: http://www.dawn.com/wps/wcm/connect/dawn-content-library/dawn/the-newspaper/business/mfbs-sponsor-shares-to-be-deposited-in-cdc-759