SBP suspends licenses of three exchange companies

KARACHI: The State Bank of Pakistan (SBP) on Tuesday suspended the license of three exchange companies in Karachi, ARY News reported.

As per the notification, the SBP has suspended the authorization of three exchange companies on account of serious violation of the State Bank’s regulations with immediate effect until further orders.

The notification further barred the head offices of the exchange companies and their outlets from undertaking any kind of business activity during the suspension period.

Earlier, the SBP suspended the permit of an exchange company.

As per the details, the permit of the Royal International Exchange Company was suspended by the State Bank of Pakistan (SBP).

The step was taken by SBP over the exchange company’s violation of rules and regulations.

Earlier, United Bank Limited (UBL) announced to establishment of its own exchange company. As per details, the announcement came after the Board of Directors (BoD) meeting approved the “establishment of an EC with Rs1 billion as initial paid-up capital, as a wholly-owned subsidiary of UBL”.

The establishment of exchange companies by banks has started after the ban on B-category exchange companies and the SBP has recently permitted banks to set up exchange companies.