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State Bank of Pakistan

Exchange company license may be revoked on false information

KARACHI: The State Bank of Pakistan (SBP) has said it can revoke license of any exchange company in case the central bank has been provided with false, misleading or inaccurate information by or on behalf of the exchange company.

According to Exchange Company Manual, the SBP has the right to revoke a license of an exchange company at any time.

Before a license is revoked, the Exchange Company shall be served with a notice mentioning therein the reasons for such revocation and instructions for the company to explain its position in writing within 30 days from the date of issuance of notice.

The SBP said that license of an Exchange Company can be revoked by the central bank if:

(a) The State Bank is provided with false, misleading or inaccurate information by or on behalf of the Exchange Company.

(b) It appears to the State Bank that the Exchange Company has violated these or any other regulation, instruction or circular issued by the State Bank or if any of the conditions of license has not been fulfilled or is incapable of fulfillment.

(c) The interests of the customers of Exchange Company are in any way threatened, whether by the manner in which the company is conducting or intends to conduct its affairs or for any other reason.

(d) The Exchange Company did not commence its exchange business within three months from the date of issuance of license by the State Bank.

(e) Deliberate obstruction of the State Bank inspection team in the performance of their duties, by Exchange Companies or officials of its network.

(f) Any other reason that in the opinion of the State Bank disqualifies the Exchange Company to hold the license.