Government of Pakistan

State of Bank Pakistan

June 7, 2004

F.E. Circular No. 06 of 2004

All Authorised Dealers, Exchange Companies

And Authorised Money Changers

In Foreign Exchange

Dear Sirs,

Formation of Exchange Company ‘B’ Category [E.C.(B)]

In order to bring the existing Authorized Money Changers within the realm of Exchange Companies and to ensure smooth transition of their existing business, it has been decided that the existing authorized Money Changers may be allowed to establish Exchange Companies of ‘B’ Category [E.C (B)]. The procedure for establishing the E.C (B) is given below:

(a) The applicants (Minimum 5 Licenced AMC’s) interested in formation of Exchange Companies of ‘B’ Category E.C (B) would, in the first instance, apply on prescribed form to State Bank for obtaining an NOC which shall be processed within 3 working days by the SBP.

(b) On receipt of the NOC from the SBP, the applicant will submit an application to SECP for incorporation under the Companies Ordinance.

(c) After the Exchange Company of ‘B’ Category is registered by SECP, the applicant would apply to SBP for issuance of Licence against surrender of at least 5 MC Licences and for commencement of operations.

Scope of business and rules & regulations which would govern E.C (B) are given at Annexure-I. Application Form for the Licensing of E.C (B) is also attached at Annexure-II.

Kindly bring the above to the notice of your constituents and others concerned.

S/d

(AZHAR KURESHI)

Director