The State Bank of Pakistan (SBP) has issued an Exchange Company License to BOP Exchange (Private) Limited, a subsidiary of The Bank of Punjab, according to a stock filing on Wednesday.
The license was granted on September 18, 2024, following the earlier issuance of a Certificate of Incorporation by the Securities & Exchange Commission of Pakistan in April this year.
This move is part of the regulatory compliance process for BOP Exchange, which is set to commence its operations in Pakistan’s growing exchange market.
In October 2023, the Bank of Punjab decided to join the ranks of other prominent banks in the country by establishing its wholly-owned exchange company with an authorized capital of Rs2.50 billion.
The BOP’s board approved the establishment of an exchange company in their meeting on October 28, 2023, in accordance with the structural reforms introduced by the State Bank in the exchange companies sector to enhance regulatory oversight, bolster governance frameworks, fortify internal controls, and tighten compliance protocols.
Furthermore, the SBP also raised the minimum capital requirement for exchange companies from Rs 200 million to Rs 500 million, with the additional stipulation that the capital must be unencumbered by prior losses.
