The facility of “Non-Competitive Bidding” has been introduced by SBP, with the intent to accommodate Individuals and Small institutional investors to invest directly in Government of Pakistan issued Market Treasury Bills (MTBs) and Pakistan Investment Bonds (PIBs).
The non-competitive bids are required to be sent to SBP separately from the normal bids before auction time with the name and amount (face value of investment) of investors without quoting price through primary dealers on the prescribed format (download NCB Form). The cut-off time advised by State Bank of Pakistan for submission of Non –Competitive Bids is one day prior to Auction date, latest by 1.00 pm Investors are allowed to submit one bid in a single tenor. In case of submission of multiple bids in one tenor by single investor, all such bids would be treated as void.
The Non-Competitive Bid(s) will be accepted at weighted average yield in each tenor as decided in the primary auction. The result of Non-Competitive Bid is announced by SBP along with the Auction result. In case of over-subscription, non-competitive bids will be accepted in order of lowest to highest amount. As advised by State Bank of Pakistan, It is Mandatory for all bids received under Non-Competitive category to be settled on the auction settlement date.