January 17, 2024 (MLN): The Securities and Exchange Commission of Pakistan has issued the Certificate of Incorporation to Faysal Islami Currency Exchange Company (Private) Limited, Faysal Bank Limited (PSX: FABL)'s filing on PSX informed today.
In November 2023, the State Bank of Pakistan (SBP) issued the no-objection certificate to FABL for establishing an exchange company in the name of Faysal Islami Currency Exchange Company (Private) Limited.
On September 28, 2023, the Board of Directors of FABL approved the establishment of an Exchange Company with an initial paid-up capital of up to Rs1 billion.
The exchange company would be a wholly owned subsidiary of the bank.
This development came after the SBP introduced reforms for the banks engaged in foreign exchange business to establish wholly owned Exchange Companies (ECs) to cater to the legitimate foreign exchange needs of the general public.
This action taken by the central bank comes in response to various regulatory issues that have been observed in the operations of ECs.
With this initiative, the SBP aims to consolidate and transform various types of ECs into a single category with a well-defined mandate.
