Attention of exchange companies of both categories is invited to instructions contained in FE Circular No. 09 dated July 30, 2002; FE Circular No. 06 dated June 7, 2004 and terms & conditions of their licenses related to authorized and paid-up capital.

In order to encourage and facilitate exchange companies to increase their capital, it has been decided that henceforth prior approval of SBP regarding enhancement of authorized and paid-up capital by the existing directors/shareholders will not be required. The exchange company may directly approach Securities & Exchange Commission of Pakistan (SECP) for fulfillment of applicable formalities to increase its authorized or paid-up capital.

Once SECP’s formalities have been fulfilled, the company will accordingly maintain the required Statutory Liquidity Reserve (SLR) with respective area office of SBP, Banking Services Corporation (BSC) and immediately intimate Exchange Policy Department (EPD) and Off-Site Supervision & Enforcement Department (OSED) of the State Bank of Pakistan by submitting evidence of completion of formalities with SECP, enhancement/injection of capital, and maintenance of SLR with SBP, BSC.

It must, however, be ensured that the funds utilized for enhancement of capital of the company are legitimate under related laws. All other terms and conditions on the subject shall remain unchanged.