The central bank on Friday warned the exchange firms of ‘A’ & ‘B’ categories of punitive action against them if they were found deliberately obstructing SBP’s inspection teams in performance of their duties. The punitive action may include, inter alia, suspension / revocation of their licences, permanent disqualification of its directors and sponsors to conduct foreign exchange business in any capacity, said an SBP circular issued Friday. It may be pointed out that the State Bank has the right to inspect the activities of exchange companies at any time it finds appropriate to ensure adherence to its rules and regulations. The regulator reiterated that the money exchangers were required to fully cooperate with the SBP inspection teams and provide full disclosure of information required during the course of inspection, including but not limited to their activities, accounts, operations, IT systems and records and no Exchange Company or any official of its entire network shall obstruct or hinder the SBP inspection team that is carrying out duties or functions under SBP directives as well as provide false, misleading or inaccurate information to the SBP inspection teams.
BANKS BARRED FROM USING HELD TO MATURITY
SECURITIES FOR BORROWING: SBP has decided to prohibit all banks from using the securities classified under ‘Held to Maturity’ category for borrowing from SBP in Open Market Operations (OMOs)/ reverse repo facility with effect from 19th October. Given the liquidity position of the market, it has been decided that securities classified under Held to Maturity category cannot be used for borrowing from SBP in OMOs/ reverse repo facility, said a circular issued by the State Bank Friday. It may be recalled that banks were earlier allowed to use the securities classified under the category in question for borrowing under SBP repo facility (OMO)/ discount window.
