Please
refer to BSD Circular No. 4 dated January 31, 2001 on the
captioned subject.
It
has been decided with immediate effect to substitute the instructions
contained in the aforesaid Circular as under:
a)
No Investment Bank shall:
i)
commence business unless it has a minimum paid-up capital
of Rs 500 million; or
ii)
font-family:Arial">carry on business unless the aggregate of its capital and unencumbered
general reserves (excluding reserves fund maintained under
Rule-3 of Rules of Business for NBFIs) is Rs 500 million.
b)
If an Investment Bank is found short of the above-mentioned
minimum capital requirement on the date of issuance of this
Circular, it shall meet the short fall in the following manner:
i)
Raise its paid-up capital including unencumbered general
reserves to
Rs 300 million upto January 1, 2002.
ii)
font-family:Arial">Raise its paid-up capital including unencumbered general reserves
to
Rs 500 million upto January 1, 2003.
Investment Banks not meeting the minimum paid-up
capital requirement as set hereinabove shall be eligible to
undertake only such kinds of business and transactions which
will be specified by the State Bank of Pakistan for a particular
institution.
Please acknowledge receipt.
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