Case
THE FOREIGN EXCHANGE BEARER CERTIFICATES
INDUSTRY :FINANCIAL INSTRUMENTS
AREA :FINANCE
ORGANIZATION :-
LENGTH :6
LUMS No :02-546-96-1
PUBLICATION YEAR : 1996
ABSTRACT:
Dr Yasir Mahmood was a broker dealing in the sale of Foreign Exchange Bearer Certificates (FEBCs), at the Lahore Stock Exchange. FEBCs were a new instrument, introduced in June 1985, providing the general public an easy access to foreign exchange. In August 1990, Dr Yasir Mahmood, who had been studying the FEBC market closely since its inception, believed tha't the demand for FEBCs was primarily for foreign exchange purposes, and the investment aspect of the scheme was ignored by the public. Yasir was convinced that this situation provided arbitrage opportunities. He wanted to develop a trading strategy to fully exploit such opportunities.