Circulars/Notifications - Banking Policy Department  
 BPD Circular Letter No. 15
June 29, 2002  

Presidents/Chief Executives
All Banks/NBFIs

Dear Sirs,

Guidelines for Ineligibility to act as Director of Bank/NBFI

 

Please refer to BSD Circular Letter No.1 of 1-1-2002 concerning prior clearance of State Bank for appointment of Chairman/President/Managing Director/Chief Executive/Member Board of Directors of Banks/NBFIs. 

II.       The matter has been reviewed and it has been decided to substitute the instructions contained in para 3 of the aforesaid circular letter as under:- 

“3.   Keeping the aforesaid position in view, it has been decided that a person can become Director/nominee Director of a Bank/NBFI unless he falls within one or more categories mentioned below: 

a.

Persons who are holding substantial interest (i.e. not less than 20% of the shares) or are working as Chairman, Director, Chief Executive, Chief Financial Officer, Chief Internal Auditor, Research Analyst or Trader (by whatever name/designation called) of a :

i) Money changer (firm or sole proprietorship).

ii) Member of a Stock Exchange.

iii) Corporate Brokerage House.

iv) Any company/entity owned and controlled by the persons mentioned at (i) to (iii) above.

b.

Persons who are acting as consultants, advisers of bank/NBFI in which they intend to be directors.”

III.        Notwithstanding anything stated above, anyone can become a Director of Bank/NBFI if he has a minimum holding of 10% or above in the Bank/NBFI where he intends to become a Director/Nominee Director subject to the approval of State Bank of Pakistan. 

VI.       All other instructions on the subject shall, however, remain unchanged. 

V.        Banks/NBFIs having directors on their boards who do not fulfill the criteria prescribed hereinabove are asked to regularize their position by 31st July, 2002. 

            Please acknowledge receipt.



Yours faithfully,
(Muhammad Kamran Shehzad)
Director

BPD Circulars/ Circular Letters issued in 2003
       
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