Govt may withdraw deposits if banks levy service charges

The government may withdraw its deposits, in billions, from different commercial banks to avoid the anticipated levy of service charges, it is learnt.

At the moment, the finance ministry is contemplating upon various options, including withdrawal of billions of rupees deposits, from the commercial bank to bar them levying services charges on accounts holders of 1.5 million public sector employees.

All officials in the finance ministry were reluctant to say anything on the record on this subject. When spokesman of the State Bank of Pakistan, Syed Wasimuddin, was contacted on his mobile for comments, he said that the central bank would oppose any move for levying services charges on account holders of the public servants in view of its existing circular.

Banks propose changes in prudential regulations

Banks want to impose 30 percent margin on listed companies share financing. Besides this banks want their exposure in share markets to be protected by imposing eight new safeguards.

Sources of banking industry said on Monday that keeping best international practices in view the banks have drafted five major changes in prudential regulations meant for share markets of the country.

Sources said the proposed regulation number R-41 reads: Exposure against the shares of listed companies shall be subject to minimum margin of 30 per cent of their current market value.

Small investors suffer losses due to lack of knowledge

There must be thousands of women with beautiful faces that have thought of going to Lahore and become an actress some end up as extras some in the notorious bazaar. The same is the case in Karachi, any person with a few thousand rupees to spare thinks of going to the stock market and become a big stock trader over night. Most end up broke.

There are more tales of ‘from riches to rags’ than of ‘from rags to riches’. Small investors coming to the bourse to stake their life earning in the equity bazaar must know that they might lose the whole amount in a wink of eye.