BANKERS’ EQUITY LIMITED (A)

Abstract

The case deals with the efforts of Bankers' Equity Limited, a development finance institution, to tap the capital markets in Pakistan by introducing a new financial instrument called the Certificate of Investment. The MD had to decide whether to launch the proposed certificate without certain key features disallowed by the Government of Pakistan; features which would affect the marketability of the asset. The case allows students to evaluate and compare various features of the proposed instrument with competing instruments in the market. These features include rate of return, maturities, liquidity, risk, etc.