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 Housing Finance Companies/Discount Houses.
In exercise of powers vested under the provisions of
above law it has been decided to prescribe Minimum Paid-up
Capital Requirements for Housing Finance Companies/Discount
Houses. Accordingly, all Housing Finance Companies/Discount
Houses notified under Section 3A of
the Banking Companies Ordinance, 1962 are directed
Effective immediately no Housing Finance Company/Discount
House shall commence or carry on business unless it has a
minimum paid up capital of Rs.300 million.
If a Housing Finance Company/Discount House 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 January, 2003.
Housing Finance Companies/Discount Houses 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
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