attention is invited to Section 3A of the Banking Companies
Ordinance, 1962 as amended through the Banking Companies (Amendment)
Ordinance, 2000 (copy enclosed). The amended law empowers
the State Bank to determine minimum capital requirements for
banks/NBFIs including Investment Banks.
In exercise of powers vested under the provisions of
above law it has been decided to prescribe Minimum Paid-up
Capital Requirements for Investment Banks. Accordingly, all
Investment Banks notified under Section 3A of the Banking
Companies Ordinance, 1962 are directed as follows.
Effective immediately no Investment Bank shall commence
or carry on business unless it has a minimum paid up capital
of Rs.500 million.
If an Investment Bank is found short of the above mentioned
minimum paid up capital requirement on the date of issuance
of this circular, it shall meet 50% of the shortfall latest
by 1st January, 2002 and the remaining 50% by 1st
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 SBP for a particular institution.
Please acknowledge receipt.