September 15, 2023 (MLN): The Board of Directors of Meezan Bank Limited (PSX: MEBL) has approved the establishment of an Exchange Company with an initial paid-up capital of up to Rs1 billion, the bank’s filing on PSX revealed today.
The board’s decision is subject to approval/clearance by the State Bank of Pakistan (SBP) and completion of other regulatory compliance requirements.
This Exchange Company would be a 100% owned subsidiary of the Bank.
MEBL has disclosed this information In accordance with Sections 96 and 131 of the Securities Act, 2015 and Clause 5.6.1 of the Rule Book of the PSX.
It is pertinent to note that due to regulatory issues observed in the Exchange Companies (ECs), the SBP has decided to consolidate and transform various types of ECs into a single category with a well-defined mandate.
Moreover, leading banks actively engaged in foreign exchange business also have to establish wholly owned ECs to cater to the legitimate foreign exchange needs of the general public.
This development is a direct result of the regulatory requirements imposed by the central bank.
