The
Chief Executives,
All Banks.
Dear
Sirs / Madam,
PRUDENTIAL REGULATION-XXI
Asset Management And Financial & Investment Advisory
Services
Please
refer to the instructions on the captioned subject as amended
from time to time.
It has been decided to withdraw the captioned Prudential
Regulation and allow commercial banks to establish subsidiaries
for the purpose of Asset Management and Financial &
Investment Advisory Services under the Non-Banking Finance
Companies (Establishment and Regulation) Rules, 2003 notified
by Federal Government vide S.R.O. 310(I)/2003 dated April
1, 2003.
However,
commercial banks desirous of establishing a subsidiary for
any activity mentioned in the Non-Banking Finance Companies
(Establishment and Regulation) Rules, 2003 shall strictly
observe the following guidelines:
(i)
Banks desiring to set-up any NBFC under the NBFC Rules
will do so through a separate subsidiary after obtaining
prior approval from the State Bank of Pakistan.
(ii)
The subsidiary to be set-up for the purpose shall be a
public limited company.
(iii)
The transactions undertaken / services provided by the subsidiary
set-up under the NBFC Rules should not create any financial
obligation, whether contingent or otherwise, on the balance
sheet of the holding company or otherwise.
