Banking Companies Ordinance

7/26/2019 Banking Companies Ordinance

1/165

For Official Use Only

BANKING COMPANIES ORDINANCE, 19!

"#$II of 19!%

AND

&'E BANKING COMPANIES RU#ES 19(

MADE UNDER

&'E ORDINANCE

(As amended up to 31stMay , 1997)

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&'E BANKING COMPANIES ORDINANCE, 19!

"#$II of 19!%

CON&EN&S

Par) * I

Preli+inary

Sec)ions Pa-es

1. Short title, extent and commencement 1

2. Application of other laws not barred 2

3. Limited application of Ordinance to Co-operative an!s "Omitted# 2

3A. Limited application of Ordinance to certain financial instit$tions 2

%. &ower to s$spend operation of Ordinance 2

'. (efinitions)"a# *approved sec$rities+ 3"b# *ban!in+ 3"c# *ban!in compan+ %

"d# *branch+ or *branch office+ %"dd# *creditor+ %"e# *compan+ %"ee# *debtor+ %"f# *demand liabilities+ %"ff# *famil members+ %"# *old+ '"# *loans, advances and credit+ '"h# *manain director+ '"i# *prescribed+ '"# *private compan+ '

"!# *reistrar+ '"l# *sched$led ban!+ '"m# *sec$red loans or advance+ '"mm# *sec$rities+ '"n# *State an!+ '"o# *s$bstantial interest+ /

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Sec)ions Pa-es

/. Ordinance to override memorand$m, articles, etc /

Par) .II

B/siness of Ban0in- Co+anies

0. orms of b$siness in which ban!in companies ma enae. 0

. se of the word +an!+ or an of its derivatives. 14

5. &rohibition of tradin. 14

14. (isposal of non-ban!in assets. 11

11. &rohibition of emploment of manain aents andrestrictions on certain forms of emploment. 11

12. 6estrictions on removal of records and doc$ments. 13

13. 6e7$irement as to minim$m paid-$p capital and reserve. 13

1%. 6e$lation of paid-$p capital, s$bscribed capital anda$thorised capital and votin rihts of shareholders. 1/

1'. 8lection of new directors. 10

1'A. Appointment of director b State an!. 10

1'. 6estriction on term of office of directors. 10

1'C. 9acation of Office. 1

1/. 6estriction on commission, bro!erae disco$nt, etc.,on sale of shares. 1

10. &rohibition of chare on $n-paid capital. 1

1. &rohibition of floatin chare on assets. 1

15. 6estrictions as to pament of dividend. 15

24. &rohibition of common directors. 15

21. 6eserve $nd. 24

22. Cash 6eserve. 21

23. 6estriction on the nat$re of s$bsidiar companies. 21

2%. 6estrictions on loans and advances. 22

2'. &ower of State an! to control advances b ban!in companies. 23

2'A. &ower of State an! to collect and f$rnish credit information. 2%

2'AA. &reparation of special reports. 2/

2'. 6ecover of certain d$es of ban!in companies as arrears

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of land reven$e. 2/

Sec)ions Pa-es

2/. &ower of ederal :overnment prohibit acceptanceof deposits b ban!in companies incorporated o$tside &a!istan. 2/

2/A. (eposits. 20

20. Licensin of ban!in companies. 2

20A. &rohibition of advertisin for deposits and collection. 25

20. (isr$ptive $nion activities. 34

2. 6estrictions on openin of new, and transfer of existin

place of b$siness. 34

25. ;aintenance of li7$id assets. 31

34. Assets in &a!istan. 32

31. nclaimed deposits and articles of val$e. 32-33

32.


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certain ban!in companies. %

Sec)ions Pa-es

Par) .IIA

&ransac)ion of Ban0in- B/siness Ille-allyBy Co+anies, e)c2

%3A. &ower to call for certain information, etc. %

%3AA. Special provisions. %5

%3. &ower to ma!e declaration. '1

%3C. Conse7$ences of a declaration $nder section %3. '1

%3(. (eposit of cash and preservation of assets, etc. '2

%38. Statement of assets and liabilities to be s$bmitted to State an!. '3

%3. Conse7$ential provisions for windin $p, etc. '%

Par) .III

S/sension of B/siness an3 4in3in- / of

Ban0in- Co+anies

%%.


6/165

Sec)ions Pa-es

'. &referential paments to depositors. /5

'5. 6estriction on vol$ntar windin $p. 01

Par) .I$

Secial Pro5isions for See3y Disosal of 6in3in- /

Procee3in-s

/4. &art =9 to override other Laws. 02

/1. &ower of


7/165

Sec)ions Pa-es

1. &art == not to appl to ban!in companies bein wo$nd $p. '

2. 9alidation of certain proceedins. '

Par)**I$A

Ban0in- Mo7)asi8

2A. Appointment of ;ohtasib. '2. erms and conditions of the an!in ;ohtasib. /2C. 6eference to an!in ;ohtasib b Co$rt. 2(. &roced$re for ma!in complaints. 28. 6ecommendations for implementation 52. &ower to call for information. 54

2:. 6eport of an!in ;ohtasib. 54

Par) .$

Miscellaneo/s

3. &enalties. 51

3A. (ishonest removal of pleded oods. 5%

%. ConiBance of offences, etc. 5%

'. Application of fines. 5'

/. Special provisions for private ban!in companies. 5'

0. 6estriction on acceptance of deposits withdrawable

b che7$es. 5'

. Chane of name b a ban!in compan. 5'

5. Alteration of memorand$m of a ban!in compan. 5'

54. Certain claims for compensation barred. 5'

51. Application of certain provisions to ban!in companincorporated b special enactments of the ederal Leislat$re. 5/

51A. Application of other laws barred. 5/

51. 6emoval of diffic$lties. 5/

52. &ower of ederal :overnment to ma!e r$les. 5/

53. &ower to exempt in certain cases. 50

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Sec)ions Pa-es

53A. 8xemption of Officers, etc., from liabilit. 50

53. 8xemption from re7$irement of licence. 50

53C. 8xchane of information. 5

53(. Contin$ance of chare and priorit. 5

5%. &rotection of action ta!en in ood faith. 5

5'. 6epeals. "Omitted#. 55he irst Sched$le "Omitted#. 144he Second Sched$le-O6; A-orm of alance Sheet. 141 - 143

?otes. 14%

orm orm of &rofit D Loss Acco$nt. 14'he hird Sched$le-List of (ebtors. 14/(eclaration of approved sec$rities-?otifications. 140

&7e Ban0in- Co+anies R/les, 19(

R/les

1. Short title, extent and commencement. 1402. =nterpretation. 140

3. S$bmissions of ret$rns. 14%. List of officers. 145'. (eposits. 145/. >ithdrawals of deposits. 1110. Chanes in deposits. 111. ;at$rin of sec$rit deposits. 1115. =nterest on deposits. 11114. Licensin of ban!in companies. 11111. Openin of new places of b$siness. 11212. List of Offices. 11213. &$blication of approved c$rrencies and sec$rities. 112

1%. ;anner of p$blication of acco$nts and balance sheet. 1131'. List of debtors. 1131/. &ower to exempt in certain cases. 113


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Sec)ions Pa-es

10. S$bmissions of ret$rns in vario$s forms. 113

orm =- Certificate of (eposits b the State an!. 11%

orm ==- Statement of cash reserve. 11'

orm ===- Statement of $n-sec$red loans and advances. 11/ - 110

orm =9- orm of application for a licence to commencean!in b$siness b a compan incorporatedin &a!istan and desirin to commence ban!in

b$siness. 11-124orm 9- orm of application for a licence to carr on ban!in

b$siness b a compan incorporated in &a!istan and in existence on the commencement of the Ordinance. 121 -122

orm 9=- orm of application for a licence to commenceEcarron ban!in b$siness in &a!istan b a ban!in companincorporated o$tside &a!istan. 123-112'

orm 9==- orm of application for permission to open a newplace of b$siness or chane the location of an existinplace of b$siness. 12/-134

able A- Statement showin n$mber of existin offices ma!in

losses. 131

able - Statement showin n$mber of offices in existence for less than three ears on the date of application. 132

orm 9===- Statement of offices in &a!istan. 133

orm =F- Statement of demand and time liabilities. 13%-13'

orm F- Statement of Assets and Liabilities G ;onthl. 13'-130

orm F=- 6et$rn of $nclaimed deposits. 13

orm F==- Statement of Assets and Liabilities in &a!istan as at

the close of b$siness on 34thH$neE31st(ecember, 135 -1%4

15.

orm F===- List of debtors of a ban!in compan ordered to be wo$nd $p. 1%1

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&'E BANKING COMPANIES ORDINANCE, 19!

ORDINANCE No2 #$II OF 19!

I0th H$ne, 15/2J

An or3inance )o consoli3a)e an3 a+en3 )7e la4 rela)in- )o 8an0in-

co+anies2

>hereas it is expedient to consolidate and amend the law relatin to ban!incompaniesK

?ow, therefore, in p$rs$ance of the &roclamation of the seventh da of October, 15',and in exercise of all powers enablin him in that behalf, the &resident is pleased to ma!e and

prom$late the followin Ordinance) G

Par) I

PRE#IMINAR

1. S7or) )i)le, e:)en) an3 co++ence+en)2 "1# his Ordinance ma be calledthe an!in Companies Ordinance, 15/2.

"2# =t extends to the whole of &a!istan."3# =t shall come into force at once.

MMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMhe territories of &a!istan have been defined in Article 1, cla$se "2# of the Constit$tion of the =slamic 6ep$blic of

&a!istan and extended to A.H. D N "8xtension of Land# Act, 154.he territories of &a!istan shall comprise)-

"a# he &rovinces of al$chistan, the ?orth >est rontier, the &$nbab and SindK"b# he =slamabad Capital erritor, hereinafter referred to as the ederal CapitalK"c# he ederall Administered ribal AreasK and"d# S$ch states and territories as are or ma be incl$ded in &a!istan, whether b accession or otherwise.

6ef) he Constit$tion "irst Amendment# Act, 150% "Act ?o. FFF=== of 150%#. he :aBette of &a!istan, 8xtraordinar &art 1,;a , 150%.

he Ordinance and the r$les, notification and orders made there$nder, as in force in ?.>..&. before the 1' thH$l, 150', havebeen applied to the (istricts of Chitral, (ir., Swat and ;ala!and &rotected Areas of the ?.>..&. b 6e$lation ?o. === of 150', Section 2and the Sched$le.

he Ordinance and the r$les, notifications and orders made there$nder, have been applied to the whole of the ederallAdministered ribal Areas or to the parts of those Areas to which the do not alread appl, b 6e$lation ?o. l of 150', Section 2 and theSched$le.

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2. Alica)ion of o)7er la4s no) 8arre3.- he provisions of this Ordinance shall be in

addition to, and not, save as hereinafter expressl provided, in deroation of, the CompaniesAct, 1513 "9== of 1513#, and an other law for the time bein in force.

(A2;#i+i)e3 alica)ion of Or3inance )o cer)ain financial ins)i)/)ions2


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"2# he ederal :overnment ma, notification in the official :aBette, extend fromtime to time, the period of an s$spension $nder s$b-section "1# for s$ch period or periods,not exceedin sixt das at an one time, as it thin!s fit so however that the total period doesnot exceed one ear.

"3# A cop of an notification iss$ed $nder this section shall be laid on the tableof the ederal Leislat$re

"i# if it is in session, within three das of the iss$e of the notificationKand

"ii# if it is not in session, as soon as it meets after the iss$e of thenotification.

=2 Defini)ions2> =n this Ordinance, $nless there is anthin rep$nant inthe s$bect or context,"a# * approved sec$rities+ means the shares of the an!ers 87$it

Limited or sec$rities in which a tr$stee ma invest mone$nder cla$se "a#, cla$se "b#, cla$se "bb#, cla$se "c# or cla$se "d# ofsection 24 of the r$st Act, 12 "== of 12#, and for the p$rposeof

"i# s$b-section "3# of section 13, incl$des s$ch other sec$rities asthe ederal :overnment ma, b notification in the official:aBette, declare to be approved sec$rities for the p$rpose of

that s$bsectionK and

"ii# s$b-section "1# of section 25, incl$des s$ch tpes of &a!istanr$pee obliations of the ederal :overnment or a &rovincial:overnment or of a Corporation wholl owned or controlled,directl or indirectl, b the ederal :overnment or a&rovincial :overnment and $aranteed b the ederal:overnment as the ederal :overnment ma, b notification inthe official aBette, declare, to the extent determined from timeto time, to be approved sec$rities for the p$rpose of that s$b-sectionK

"b# *ban!in means the acceptin, for the p$rpose of lendin orinvestment, of deposits of mone from the p$blic, repaable ondemand or otherwise, and withdrawable b che7$e, draft, order orotherwiseK

Cla$se "a# of section ' s$bstit$ted vide the an!in Companies "hird Amendment# Ordinance, 154 "L9=== of 154# :aBetteof &a!istan 8xtra, &art = dated 2%-12-154. &aes '% and '%5. "8ffective date is 2%-12-154#.

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"c# *ban!in compan+ means an compan which transacts the b$siness ofban!in in &a!istanK

E:lana)ion2>An compan which is enaed in the man$fact$re of oods or carries

on an trade and which accepts deposits of mone from the merel for thep$rpose of financin its b$siness as s$ch man$fact$rer or trader shall not bedeemed to transact the b$siness of ban!in within the meanin of this cla$seK

"d# *branch+ or *branch office+, in relation to a ban!in compan, means anbranch or branch office, whether called a pa office or s$b-pa office or ban other name, at which deposits are received, che7$es cashed or moneslent, and for the p$rposes of section %4 incl$des an place of b$siness wherean other form of b$siness referred to in s$b-section "1# of section 0 istransactedK

"dd# *creditor+ incl$des persons from whom deposits have been received on thebasis of participation in profit and loss and a ban!in compan or financialinstit$tion from which financial accommodation or facilit has been receivedon the basis of participation in profit and loss, mar!-$p in price, hire-p$rchase,lease, or otherwiseK

"e# *compan+ means an compan which ma be wo$nd $p $nder theCompanies Act, 1513 "9== of 1513#K

"ee# *debtor+ incl$des a person to whom, or a ban!in compan or financial

instit$tion to which, finance as defined in the an!in rib$nals Ordinance15%, has been providedK=

"f# *demand liabilities+ means liabilities which m$st be met on demand, and*time liabilities+ means liabilities which are not demand liabilitiesK

"ff# *famil members+ in relation to a person means his spo$se, dependent linealascendants and descendants and dependent brothers and sistersK

MMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMM =n section ' new cla$ses "dd# and "ee# inserted, vide the an!in Companies

"hird Amendment# Ordinance, 154 "L9=== of 154#. :aBette of &a!istan 8xtra, &art = dated 2%-12-154. &aes '% and '%5 "8ffective dateis 2%-12-154#

=Oriinal cla$se "ee# s$bstit$ted vice the an!in and inancial Services "Amendment of Laws# Ordinance, 15% "Ordinance

?o. L9== of 15%# :aBette of &a!istan, 8xtra, &art =, dated (ecember 31, 15% &aes /1 to /5'.

=nserted Cla$se "ff# vide an!in Companies "Amendment# Act, 1502 "Act ?o. FFF of 1502#. he :aBette of &a!istan, 8xtra,&art =, Oct. 1/, 1502 pae 230.

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"# *old+ incl$des old in the form of coin, whether leal tender or not, or inthe form of b$llion or inot, whether refined or notK

"# * loans, advances, and credit+ incl$des *finance+ as defined in the an!in

rib$nals Ordinance, 15%K

"h# *manain director+, in relation to a ban!in compan, means a director who,b virt$e of an areement with the ban!in compan or of a resol$tion passedb the ban!in compan in eneral meetin or b its oard of (irectors or, bvirt$e of its memorand$m or articles of association, is entr$sted with themanaement of the whole, or s$bstantiall the whole of the affairs of thecompan, and incl$des a director occ$pin the position of a manaindirector, b whatever name calledK

"i# *prescribed+ means prescribed b r$les made $nder this OrdinanceK

"# *private compan+ has the same meanin as in the Companies Act, 1513 "9==of 1513#K

"!# * reistrar+ has the same meanin as in the Companies Act, 1513 "9== of1513#K

"l# *sched$led ban!+ has the same meanin as in the State an! of &a!istan Act,15'/ "FFF=== of 15'/#K

"m# *sec$red loan or advance+ means a loan or advance made on the sec$rit ofassets the mar!et val$e of which is not at an time less than the amo$nt ofs$ch loan or advance, and *$nsec$red loan or advance+ means a loan oradvance not so sec$red, or that part of it which is not so sec$redK

"mm# *sec$rities+ incl$des sec$rities as defined in the Capital =ss$es "Contin$anceof Control# Act, 15%0 "FF=F of 15%0#,=

"n# *State an!+ means the State an! of &a!istanKMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMM

Oriinal cla$se "# s$bstit$ted vide the an!in and inancial Services "Amendment of Laws# Ordinance, 15% "Ordinance?o. L9== of 15%# :aBette of &a!istan, 8xtra, &art =, dated (ecember 31, 15% &aes /1 to /5'.

or the f$ll stop at the end of cla$se "n# a semi colon s$bstit$ted and thereafter a new cla$se "o# added vide an!inCompanies "Amendment# Act, 1502"Act ?o. FFF of 1502#. he :aBette of &a!istan, 8xtra, Oct. 1/, 1502 &art 1 &ae 230. "8ffective dateof amendments is 13-14-1502.#

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"o# *s$bstantial interest+ in an $nderta!in shall be deemed to be possessed b aperson if he or an of his famil members is the owner, director or officer ofor has control over the $nderta!in or if he or an of his famil members

holds shares carrin not less than twent per cent of the votin power in s$ch$nderta!inK

E:lana)ion. or the p$rpose of this cla$se,

"i# *control+ in relation to an $nderta!in, means the power to exercise acontrollin infl$ence over the manaement or the policies of the $nderta!in,and, in relation to shares, means the power to exercise a controllin infl$enceover the votin power attached to s$ch sharesK

"ii# *person+ incl$des a


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Par) II

BUSINESS OF BANKING COMPANIES

?2 For+ of 8/siness in 47ic7 8an0in- co+anies +ay en-a-e2>

"1# =n addition to the b$siness of ban!in, a ban!in compan ma enae in an one ormore of the followin forms of b$siness, namel)-

"a# he borrowin, raisin, or ta!in $p of moneK the lendinor advancin of mone either $pon or witho$t sec$ritK thedrawin, ma!in, acceptin, disco$ntin, b$in, sellin,collectin and dealin in bills of exchane, h$ndies, promissornotes, co$pons, drafts, bills of ladin, railwa receipts,warrants, debent$res, certificates, scrips "participation termcertificates, term finance certificates, m$shari!a certificates,

modaraba certificates and s$ch other instr$ments as ma beapproved b the State an!#and other instr$ments, andsec$rities whether transferable or neotiable or notK therantin and iss$in of letters of credit, traveller@s che7$esand circ$lar notesK the b$in, sellin and dealin in b$llionspices the b$in and sellin of forein exchane incl$dinforein ban! notesK the ac7$irin, holdin, iss$in oncommission, $nderwritin and dealin in stoc!, f$nds, shares,debent$res, debent$re stoc!, bonds, obliations, sec$rities"participation term certificates, term finance certificates,m$shari!a certificates, modaraba certificates and s$ch otherinstr$ments as ma be approved b the State an!# andinvestment of all !indsK the p$rchasin and sellin of bonds,scrips or other forms of sec$rities "participation termscertificates, term finance certificates, m$shari!a certificates,modaraba certificates and s$ch other instr$ments as ma beapproved b the State an!s# on behalf of constit$ents orothers, the neotiatin of loans and advancesK the receivin ofall !inds of bonds, scrips of val$ables on deposit or for safec$stod or otherwiseK *the providin of safe deposit va$lts+) thecollectin and transmittin of mone and sec$ritiesK

"aa# the providin of finance as defined in the an!in rib$nalsOrdinance, 15%K

=nserted vide the an!in and inancial Services "Amendment of Laws# Ordinance 15% "Ordinance ?o) L9== of 15%# :aBetteof &a!istan, 8xtra, &art = dated (ecember 31, 15% paes /1 to /5'.

?ew cla$se "aa# =nserted vide the an!in and inancial Services "Amendment of Laws# Ordinance, 15% "Ordinance ?o.L9== of 15%# :aBette of &a!istan, 8xtra, &art =, dated the (ecember 31, 15%, &aes /1 to /5'.

1/


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for an loans or advances or which ma be connected with ans$ch sec$ritK

"h# $nderta!in and exec$tin tr$stsK

"i# $nderta!in the administration of estates as exec$tor, tr$stee orotherwiseK

"# establishin and s$pportin or aidin in the establishment ands$pport of associations, instit$tions, f$nds, tr$sts andconveniences calc$lated to benefit emploees or ex-emploeesof the compan or the dependents or connections of s$ch

personsK rantin pensions and allowances and ma!inpaments towards ins$ranceK s$bscribin to or $aranteeinmones for charitable or benevolent obects or for an

exhibition or for an p$blic, eneral or $sef$l obectK

"!# the ac7$isition, constr$ction, maintenance and alteration of anb$ildin or wor!s necessar or convenient for the p$rpose ofthe companK

"l# sellin, improvin, manain, developin, exchanin, leasin,mortain, disposin of or t$rnin into acco$nt or otherwisedealin with all or an part of the propert and rihts of thecompanK

"m# ac7$irin and $nderta!in the whole or an part of the b$sinessof an person or compan, when s$ch b$siness is of a nat$reen$merated or described in this s$b-sectionK

"n# doin all s$ch other thins as are incidental or cond$cive to thepromotion or advancement of the b$siness of the companK

"o# an other form of b$siness which the ederal :overnmentma, b notification in the official :aBette, specif as a form of

b$siness in which it is lawf$l for a ban!in compan to enae.

"2# ?o ban!in compan shall enae in an form of b$siness other thanthose referred to in s$b-section "1#.

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@2 Use of )7e 4or3 Ban0 or an of its derivatives - 8ver compancarrin on the b$siness of ban!in in &a!istan shall $se the word *ban!+, or an of its

derivatives as part of its name and no compan other than a ban!in compan shall $se in itsname an word calc$lated to indicate that it is a ban!in compan)

&rovided that nothin in this section shall appl to-"a# s$bsidiar of a ban!in compan formed for one or more of the

p$rpose mentioned in s$b-section "1# of Section 23 whose nameindicates that it is a s$bsidiar of that ban!in companK and

"b# an association of ban!s formed for the protection of their m$t$alinterests and reistered $nder section %2 of the Companies Ordinance15%"FL9== of 15%#)P

&rovided f$rther that the State an! ma, s$bect to s$ch conditions, if an, as it madeem fit, b notification in the Official :aBette, a$thorise a compan not bein a ban!incompan to $se in its name the word Qban!@ or an of its derivatives.

5. Pro7i8i)ion of )ra3in-2>8xcept as a$thorised $nder section 0, no ban!incompan shall directl or indirectl deal in the b$in or sellin or barterin of oods orenae in an trade or b$, sell or barter oods for others, otherwise than in connection with

bills of exchane received for collection or neotiation.

E:lana)ion2M or the p$rpose of this section, *oods+ means ever !ind of movable

propert, other than actionable claims, stoc!s, shares, mone, b$llion and species, and allinstr$ments referred to in cla$se "a# of s$b-section "1# of Section 0. =n section , for the words, After the expir of two ears from the commencement of this Ordinance *ever compan+ the words

*8ver compan+ s$bstit$ted vide ederal Laws "6evision and (eclaration# Ordinance, 151 "Ordinance ?o. FF9== of 151#:aBette of &a!istan, 8xtra, &art =, H$l , 151 &aes 3%' G %0'.

P. he words @2/ of Companies Act 1513@ was s$bstit$ted b Q%2 of Companies Ordinance 15%@ and the words Qederal :ovt. =nthe proviso was s$bstit$ted b the words QState an!@ vide Ordinance ?o. =F of 1550 dated 21-1-1550.

=n section for the f$ll stop at the end of the proviso a colon has been s$bstit$ted and thereafter a new proviso has been addedvide an!in Companies "Amendment# Act, 150' "Act ?o. LF9 of 150'#. he :aBette of &a!istan, 8xtra, &art =, Sept. 1, 150',&ae %51"8ffective date of amendment is 25--150'#.

Section 5 s$bstit$ted vide the an!in Companies "hird Amendment# Ordinance, 154 "Ord. L9=== of 154#. he :aBette of&a!istan 8xtra, &art = dated 2%-12-154, &ae '%5 G ''4.

= =n 2ndproviso the words *wholl or partl owned or controlled b it or b the State an!+ occ$rrin after the word *a compan+

and before *not bein+ omitted vide ?o. . 2"2#5-&$b, Ord. === of 155. he :aBette of &a!istan, 8xtra &art-=, dated 23-1-155,&ae G20 to 33.

R he an!in Companies "Amendment # Act, 1550 dated 31-'-1550.

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20/165

12 Disosal of non*8an0in- asse)s.?otwithstandin anthincontained in section 0, no ban!in compan shall hold "except as ma be permitted bthe State an! from time to time or as is re7$ired#>for an period exceedin sevenears from the ac7$isition thereof or from the commencement of this Ordinance,whichever is later or an extension of s$ch period as in this section provided, and

s$ch propert shall be disposed of within s$ch period or extended period, as the casema be)

&rovided that the ban!in compan ma, within the period of seven ears asaforesaid, deal or trade in an s$ch propert for the p$rpose of facilitatin the disposalthereof)

&rovided f$rther that the State an! ma in an partic$lar case extend theaforesaid period of seven ears b s$ch period not exceedin five ears where it issatisfied that s$ch extension wo$ld be in the interests of the depositors of the ban!incompan.

E:lana)ion.or the p$rpose of this section propert, a s$bstantial portionof which is in $se b ban!in compan for its own en$ine re7$irements shall bedeemed to be propert for its own $se.

112 Pro7i8i)ion of e+loy+en) of +ana-in- a-en)s an3 res)ric)ions on

cer)ain for+s of e+loy+en)."1# ?o ban!in compan

"a# shall emplo or be manaed b a manain aentK or

"b# shall emplo or contin$e the emploment of an person

"i# who is, or at an time has been, ad$dicated insolvent or hass$spended pament, or has compo$nded with his creditors, orwho is, or has been, convicted b a criminal co$rt of an offenceinvolvin moral t$rpit$deK and

"ii# whose rem$neration or part of whose rem$neration ta!es theform of commission or a share in the profits of the compan)

&rovided that nothin contained in s$b-cla$se "ii# shall appl tothe pament b a ban!in compan of

MMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMM

=S$bstit$ted for the words and comma occ$rrin between the word *shall hold+ and the words *for an period+ in Section 14

vide the an!in and inancial Services "Amendment of Laws# Ordinance, 15% "Ordinance ?o. L9== of 15%# :aBette of &a!istan, 8xtra,&art = dated (ecember 31, 15% &aes /1 to /5'.

24


21/165

"a# an bon$s in p$rs$ance of a settlement or award arrivedat or made $nder an law relatin to ind$strial disp$tesor in accordance with an scheme framed b s$ch

ban!in compan or in accordance with the $s$al-

practice prevailin in ban!in b$sinessK or

"b# an commission to an bro!er "incl$din $aranteebro!er#, cashier-contractor, clearin and forwardinaent, a$ctioneer or an other person, emploed b the

ban!in compan $nder a contract otherwise than as are$lar member of the staff of the companK

"c# shall be manaed b an person

"i# who is a director of an other compan notbein a s$bsidiar compan of the ban!incompan or a compan reistered $nder section2/ of the Companies Act, 1513 "9== of 1513#,except with the previo$s approval of the Statean!K or

"ii# who is enaed in an other b$siness or vocationK or

"iii# who has a contract with the compan for itsmanaement for a period exceedin five ears atan one time)

&rovide that an contract with the compan for its manaement ma be renewed orextended for a f$rther period not exceedin five ears at a time if and so often as the directorsso decide)

&rovided f$rther that nothin in this cla$se shall appl to a director, other than themanain director, of a ban!in compan b reason onl of his bein s$ch director.

"2# >here a person holdin the office of a chairman or director or manaer or

chief exec$tive officer "b whatever name called# of a ban!in compan is, or has been fo$ndan trib$nal or other a$thorit "other than a criminal co$rt# to have contravened the bprovision of an law and the State an! is satisfied that the contravention is of s$ch a nat$rethat the association of s$ch person with the ban!in compan is or will be detrimental to theinterest of the ban!in compan or its depositors or otherwise $ndesirable, the State an!ma

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22/165

ma!e an order that person shall cease to hold the office with effect from s$ch date as ma bespecified therein and there$pon, that office shall, with effect from the said date, becomevacant.

"3# An order made $nder s$b-section "2# in respect of an person ma alsoprovide that he shall not, witho$t the pervio$s permission of the State an! in writin, in anwa, directl or indirectl, be concerned with, or ta!e part in the manaement of, the ban!incompan or an other ban!in compan for s$ch period not exceedin five ears as ma bespecified in the order.

"%# ?o order $nder s$b-section "2# shall be made in respect of an person $nlesshe has been iven an opport$nit of ma!in a representation to the State an! aainst the

proposed order)

&rovided that it shall not be necessar to ive an s$ch opport$nit if, in the opinionof the State an!, an dela wo$ld be detrimental to the interests of the ban!in compan orits depositors.

"'# An decision or order of the State an! made $nder this section shall be finalfor all p$rposes.

12. Res)ric)ions on re+o5al of recor3s an3 3oc/+en)s. ?o ban!in companshall remove from &a!istan to a place o$tside &a!istan an of its records and doc$mentsrelatin to its b$siness at is branches, whether the are f$nctionin or not, witho$t the prior

permission in writin of the State an!.

E:lana)ion. =n this section the term *records+ means leders da boo!s, cashboo!s, acco$nts boo!s and all other boo!s $sed in the b$siness of a ban!in compan and theterm *doc$ments+ means vo$chers, che7$es, bills, pa orders, sec$rities for advances and another doc$ments s$pportin entries in the boo!s of, or claims b or aainst, a ban!incompan.

1(2 Re/ire+en) as )o +ini+/+ ai3*/ cai)al an3 reser5es. "1# ?oban!in compan incorporated in &a!istan shall

"a# commence b$siness $nless it has s$ch minim$m paid-$p capital as ma bedetermined b the State an!K or

Section 13 s$bstit$ted vide an!in Companies "Amendment# Act, 1502 "Act ?o. FFF of 1502#he :aBette of &a!istan 8xtra, &art = of 1/thOctober, 1502-&ae 23. "8ffective date of amendment is 13-14-1502#.

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23/165

"b# carr on b$siness $nless the areate of its paid-$p capital and$nenc$mbered eneral reserves isT of s$ch minim$m val$e within s$ch

period as ma be enerall determined b the State an! from time to time,

s$bect to a maxim$m of ten per cent of the total demand and time liabilitiesof the ban!in compan at an time)

E:lana)ion. =n this section and in sections 22 and 25, Qliabilities@ shall notincl$de the paid-$p capital or the reserves or an credit balance in the profitand loss acco$nt of the ban!in compan or the amo$nt of an loan ta!enfrom the State an! or the amo$nt received as loan in &a!istan c$rrenc bthe ban!in compan from the ederal :overnment, whether o$t of a foreinc$rrenc loan contracted b the :overnment or otherwise, or the amo$nt offorein c$rrenc loans obtained b the ban!in compan directl from anforein aenc)=

&rovided that the minim$m val$e so determined shall not, b the endof (ecember, 15'T "1#, be less than seven and a half per centT "2# of the totaldemand and time liabilities of a ban!in compan as at the close of the lastwor!in da in (ecember, 1502.

"2# >itho$t pre$dice to the provisions of section 3, the Sate an! ma, b orderin writin, re7$ire an ban!in compan which has failed to compl with the provisions ofcla$se "b# of s$b-section "1#, within the period determined $nder that cla$se to deposit withthe State an! s$ch amo$nt on s$ch terms and conditions as the State an! ma determineKand ever ban!in compan which is so re7$ired shall be bo$nd to compl with the order)

&rovided that the amo$nt of the deposit so re7$ired shall not exceed the amo$nt bwhich the areate of the time and demand liabilities of the ban!in compan exceeds theamo$nt of s$ch liabilities comp$ted on the basis of the areate val$e of its paid-$p capitaland $nenc$mbered eneral reservesT determined $nder cla$se "b# of s$b-section "1#.

S$bstit$ted for the words *it has paid $p capital+ vide an!in Companies "Amendment# Ordinance, 150 "Ordinance ?o. ===of 150#. he :aBette of &a!istan 8xtra, &art =, dated Han, '. 150 &ae 5.

=After s$b-section "1# in section 13 8xplanation added vide an!in Companies "Amendment# Ordinance, 15% "Ordinance ?o.

FFF=9 of 15%#:aBette of &a!istan 8xtra, &art = , dated 2--15%, &aes 135-%4"1# S$bstit$ted for the fi$re *154+ "2# S$bstit$ted for the words *five per cent+ vide an!in Companies "Amendment#

Ordinance, 154 "FL9= of 154#. he :aBette of &a!istan, 8xtra, &art =, dated 1thSep., 154 &ae %/0. S$bstit$ted for the words *minim$m paid $p capital+ vide an!in Companies "Amendment# Ordinance, 150 "=== of 150#.

he :aBette of &a!istan, 8xtra, &art =, dated 'thHan$ar, 150. &ae 5.

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24/165

"3# ?o ban!in compan incorporated o$tside &a!istan shall commence or carron b$siness in &a!istan $nless the areate val$e of its paid-$p capital and reserves in&a!istan at the close of an da is not less than fift la!hs= of r$pees or an amo$nt

representin seven and a half per cent=of its total demand and time liabilities in &a!istan as atthe close of the last wor!in da of the previo$s calendar ear, whichever is hiher)

&rovided that no s$ch ban!in compan shall be deemed to have complied with theprovisions of this s$b-section $nless it deposits and !eeps deposited with the State an! anamo$nt not less than what is re7$ired to be maintained $nder this s$b-section, in an one ormore of the followin forms, namel)

"i# interest-free deposit in cash in &a!istan r$peesK"ii# interest-free deposit in a freel convertible approved forein

exchane within the meanin of the SA8 A?N O &ANSA?

AC, 15'/ "FFF=== of 15'/#, specified b the SA8 A?N inrespect of s$ch ban!in companK and

"iii# deposit of $n-enc$mbered approved sec$rities) .&rovided f$rther that a deposit no made with the State an! shall be b transfer of

f$nds ban!in compan from o$tside &a!istan or in the form of assets ac7$ired b theban!in compan o$t of remittable profits made b it from deposits in &a!istan.

"%# An amo$nt deposited and !ept deposited with the State an! $nder theproviso to s$b-section "3# b an ban!in compan incorporated o$tside &a!istan shall, in theevent of the compan ceasin for an reason to carr on ban!in b$siness in &a!istan, be anasset of the compan on which the claims of all the creditors of the compan in &a!istan shall

be a first chares.

"'# he State an! ma, if it thin!s fit, extend the period referred to in s$b-section "1# or s$b-section "3# either enerall or in an partic$lar case.

"/# =f an disp$te arises in comp$tin the areate val$e of the paid-$pcapital and $nenc$mbered eneral reservesT of an ban!in compan, a determinationthereof b the State an! shall be final.

=S$bstit$ted for the words *twent+ and for the words *five per cent+ vide an!in Companies Second Amendment# Ordinance

150 "FFF9=== of 150#. he :aBette of &a!istan 8xtra, &art = dated 2' thH$ne, 150. &ae 13'. irst proviso to s$b-section "3# s$bstit$ted vide the an!in Companies "Amendment# Ordinance, 154 "FL9= of 154#.

he :aBette of &a!istan 8xtra, &art = dated 1thSept. 154, pae %/0. =nserted after the word *capital+ the words and $nenc$mbered eneral reserve+ vide an!in Companies "Amendment#

"Ordinance ?o. 111 of 150# he :aBette of &a!istan 8xtra &art = dated Han$ar ', 150- &ae 5.

2%


25/165

"0# or the p$rposes of this section, *val$e+ means the real or exchaneable val$eor, if the real or exchaneable val$e exceeds the nominal val$e, the nominal val$e.

12 Re-/la)ion of ai3*/ cai)al, s/8scri8e3 cai)al an3 a/)7orie3 cai)alan3 5o)in- ri-7)s of s7are*7ol3ers2> "1# ?o ban!in compan incorporated in &a!istanshall carr on b$siness in &a!istan $nless it satisfies the followin conditions, namel)-

"i# that the s$bscribed capital of the compan is not less than one half ofthe a$thoriBed capital and paid-$p capital is not less than one half ofthe s$bscribed capital and that if the capital is increased it complieswith the conditions prescribed in this cla$se within s$ch period notexceedin two ears as the State an! ma allowK

"ii# that the capital of the compan consists of ordinar shares

onlK

"iii# that, s$bect to the provisions contained in cla$se "iv#, the votin rihtsof an one shareholder are strictl proportionate to the contrib$tionmade b him to the paid-$p capital of the companK

"iv# that the votin rihts of an one shareholder, except those of theederal :overnment or a &rovincial :overnment do not exceed five

per cent of the total votin rihts of all the shareholders.

"2# ?otwithstandin anthin contained in an law for the time bein in force orin an contract or instr$ment no s$it or other proceedin shall be maintained aainst an

person reistered as the holder of a share in a ban!in compan on the ro$nd that the title tothe said share vests in a person other than the reistered holder)

&rovided that nothin contained in this s$b-section shall bar a s$it or other&roceedin

"a# b a transferee of the share on the ro$nd that he has obtained from thereistered holder a transfer of the share in accordance with an lawrelatin to s$ch transferK or

"b# on behalf of a minor or a l$natic on the ro$nd that the reisteredholder holds the share on behalf of the minor or l$natic.

2'


26/165

"3# 8ver chairman, manain director or chief exec$tive officer bwhatever name called of a ban!in compan shall f$rnish to the State an! thro$h that

ban!in compan ret$rns containin f$ll partic$lars of the extent and val$e of his holdin of

shares, whether directl or indirectl, in the ban!in compan and of an chane in the extentof s$ch holdin or an variation in the rihts attachin thereto and s$ch other informationrelatin to those shares as the State an! ma, b order, re7$ire and in s$ch form and at s$chtime as ma be specified in the order.

1'. Elec)ion of ne4 3irec)ors2>"1# he State an! ma, b order, re7$ire anban!in compan to call a eneral meetin of the shareholders of the compan within s$chtime, not less than two months from the date of the order, as ma be specified therein orwithin s$ch f$rther time as the State an! ma allow in this behalf, to elect in accordancewith the votin rihts permissible $nder this Ordinance fresh directors, and the ban!incompan shall be bo$nd to compl with the order.

"2# 8ver director elected $nder s$b-section "1# shall hold office $ntil the date $pto which his predecessor wo$ld have held office, if the election had not been held.

"3# An election d$l held $nder this section shall not be called in 7$estion in anco$rt.

1=A2 Aoin)+en) of 3irec)or 8y )7e S)a)e Ban0.?otwithstandin anthincontained in the Companies Act, 1513 "9== of 1513#, or in the memorand$m or articles ofassociation of an ban!in compan, the State an! ma appoint not more than one person to

be a director of a ban!in compan, whether or not he holds an 7$alification shares.

1=B2 Res)ric)ion on )er+ of office of 3irec)ors."1# A director of a ban!incompan, not bein its chief exec$tive, b whatever name called, or a director nominated$nder section 1'A, shall not hold office for more than six consec$tive ears.

E:lana)ion2>=n comp$tin the period of six consec$tive ears for the p$rpose ofthis s$b-section, an brea! of less than three ears in the contin$it of office shall bedisrearded.

"2# A director of a ban!in compan vacatin office in p$rs$ance of s$b-section

"1# shall not be eliible for re-election as a director of that ban!in compan $nless a periodof three ears has elapsed since the date on which he so vacated his office)MMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMM

Section 1'A, 1' and 1'C inserted vide an! Companies "Amendment# Act 1502 "Act ?o. FFF of 1502#. he :aBette of&a!istan , 8xtra, &art = dated October 1/, 1502 &ae 235 "8ffective date of amendment is 13-14-1502#.

2/


27/165

&rovided that a director who has to so vacate his office ma contin$e in his office fora period of not more than six months from the commencement of the an!in Companies

"Amendment# Act, 1502, or $ntil a new director is elected or co-opted in his place whicheveris earlier.

1=C2 $aca)ion of Office.A director of a ban!in compan shall vacate his officeif in relation to the ban!in compan he has failed to pa an advance or loan or aninstalment thereof or interest thereon or an amo$nt d$e on an $arantee, or to do or

perform an act areed to or $nderta!en in writin to be done or performed b him, and s$chfail$re contin$es for a period of one month after notice in writin has been served on him bthe ban!in compan callin $pon him to ma!e the pament or to do or perform the act.

12 Res)ric)ion on co++ission, 8ro0era-e, 3isco/n), e)c2 on sale of s7ares2>

?otwithstandin anthin to the contrar in sections 14' and 14'A of the Companies Act,1513 "9== of 1513#, no ban!in compan shall pa o$t directl or indirectl b wa ofcommission, bro!erae, disco$nt or rem$neration in an form in respect of an shares iss$ed

b it, an amo$nt exceedin in the areate two and one-half per cent of the paid-$p val$eof the said shares.

1?2 Pro7i8i)ion of c7ar-e on /nai3 cai)al2> ?o ban!in compan shallcreate an chare $pon an $npaid capital of the compan and s$ch chare, if created, shall

be invalid.

1@2 Pro7i8i)ion of floa)in- c7ar-e on asse)s2>"1# ?otwithstandin anthincontained in section 0 no ban!in compan shall create a floatin chare on the $nderta!inor an propert of the compan or an part thereof, $nless the creation of s$ch floatinchare is certified in writin b the State an! as not bein detrimental to the interest of thedepositors of s$ch compan.

"2# An s$ch chare created witho$t obtainin the certificate of the State an!shall be invalid.

"3# An ban!in compan arieved b the ref$sal of a certificate $nder s$b-section "1# ma, within ninet das from the date on which s$ch ref$sal is comm$nicated to

it, appeal to the ederal :overnment.

"%# he decision of the :overnment where an appeal has been preferred to it$nder s$b-section "3# or of the State an! where no s$ch appeal has been preferred shall befinal.

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15. Res)ric)ions as )o ay+en) of 3i5i3en3."1# ?o ban!in compan shall paan dividend on its shares $ntil all its capitalised expense "incl$din preliminar expenses,

oranisation expenses, share-sellin commission, bro!erae, amo$nts of losses inc$rred andan other item of expendit$re not represented b tanible assets# have been completelwritten off.

"2# ?otwithstandin anthin to the contrar contained in s$b-section "1# or in theCompanies Act, 1513 "9== of 1513#, a ban!in compan ma pa dividends on its shareswitho$t writin off

"i# the depreciation, if an, in the val$e of its investment in approvedsec$rities in an case where s$ch depreciation has not act$all been

capitalised or otherwise acco$nted for as a lossK

"ii# the depreciation, if an, in the val$e of its investments in shares,debent$res or bonds "others than approved sec$rities# in an casewhere ade7$ate provision for s$ch depreciation has been made to thesatisfaction of the a$ditor of the ban!in companK

"iii# the bad debts, if an, in an case where ade7$ate provision for s$chdebts had been made to the satisfaction of the a$ditor of the ban!incompan.

24. Pro7i8i)ion of co++on 3irec)ors2>"1# 8xcept with the permission of theState an!, no ban!in compan incorporated in &a!istan shall have as a director an personwho is a director

"i# of an other ban!in companK or

"ii# of companies which amon themselves are entitled to exercise votinrihts in excess of twent per cent of the total votin rihts of all theshareholders of the ban!in compan.

"=A# ?o ban!in compan incorporated in &a!istan shall

have as a director an person who is

"a# a ederal ;inister, a ;inister of State or a &rovincial ;inisterK or

"b# a person in the service of &a!istan who is not appointed or nominatedb :overnment as a director b virt$e of his office.

?ew s$b-section "=A# inserted vide an!in Companies "Amendment#Act, 1502, "Act ?o. FFF of 1502- he :aBette of&a!istan , 8xtra, &art = dated October 1/, 1502. &ae 2%4 "8ffective date of amendment is 13-14-1502#.

Cla$se "a# s$bstit$ted b ederal Adaptation of laws Order, 150' "&.O. % of 150'# Article 2 Sched$le :aBette of &a!istan8xtra, &art =, 1--150'" 8ffective date of Amendment is 1%--1503#.

2


29/165

"2# =f immediatel before the commencement of this Ordinance an person

holdin office as a director of a ban!in compan is also a director of companies whichamon themselves are entitled to exercise votin rihts in excess of twent per cent of thetotal votin rihts of all the shareholders of the ban!in compan he shall, within s$ch periodfrom s$ch commencement as the State an! ma specif in this behalf

"a# either resin his office as a director of the ban!in companK or

"b# choose s$ch n$mber of companies as amon themselves are notentitled to exercise votin rihts in excess of twent per cent ofthe total votin rihts of all the shareholder of the ban!incompanies as companies in which he wishes to contin$e to

hold the office of a director and resin his office as a director inthe other companies.

!12 Reser5e F/n3."1# 8ver ban!in compan incorporated in &a!istanshall create a reserve f$nd to which shall be credited

"a# if the amo$nt in s$ch f$nd toether with the amo$nt in theshare premi$m acco$nt is less than the paid-$p capital of the

ban!in compan, a s$m e7$ivalent to not less than twent percent of the balance of profit of each ear as disclosed in the

profit and loss acco$nt prepared $nder section 3% and beforean dividend is declaredK and

"b# if the amo$nt in s$ch f$nd toether with the amo$nt in theshare premi$m acco$nt is e7$al to or exceeds the paid-$pcapital of the ban!in compan, a s$m e7$ivalent to not lessthan ten per cent of the balance of profit disclosed as aforesaidand before an dividend is declared.

"2# >here a ban!in compan appropriates an s$m or s$ms from thereserve f$nd or the share premi$m acco$nt, it shall, within twent-one das from the date of

s$ch appropriation, report the fact to the State an! explainin the circ$mstances relatin tos$ch appropriation)

&rovided that the State an! ma, in an partic$lar case, extend the saidperiod of twent-one das b s$ch period as it thin!s fit or condone an dela in the ma!inof s$ch report.

S$bstit$ted for s$b-section "1# vide the an!in Companies "Amendment# Act, 1502"Act ?o. FFF of 1502#. he :aBette of&a!istan , 8xtra, &art =, dated 1/-14-1502 pae 2%4.

25


30/165

!!2 Cas7 Reser5e2> 8ver ban!in compan, not bein a sched$le ban!, shallmaintain b wa of cash reserve in cash with itself, or in c$rrent acco$nt opened with theState an! or its aent or partl in cash with itself and partl in s$ch acco$nt or acco$nts a

s$m e7$ivalent to at least two per cent of its time liabilities in &a!istan and five per cent ofits demand liabilities in &a!istan and shall s$bmit to the State an! before the fifteenth da ofever month a ret$rn showin the amo$nt so held on h$rsda of each wee! of the

precedin month with partic$lars of its time and demand liabilities in &a!istan on each s$chh$rsda or if an s$ch h$rsda is a p$blic holida $nder the ?eotiable =nstr$mentsAct, 11 "FF9= of 11#, at the close of b$siness on the precedin wor!in da.

!(2 Res)ric)ion on )7e na)/re of s/8si3iary co+anies2>"1# A ban!incompan shall not form an s$bsidiar compan except a s$bsidiar compan formed for oneor more of the followin p$rposes, namel)

"a# the $nderta!in and exec$tin of tr$sts,

"b# the $nderta!in of the administration of estates as exec$tor, tr$stee orotherwise,

"bb# the carrin on of b$siness of modaraba $nder the provisions of the;odaraba Companies and ;odaraba "loatation and Control#Ordinance 154 "FFFF= of 154#. 1

"c# the providin of safe deposit va$lts,

S$bstit$ted for the word *rida+ and shall be deemed to have been so s$bstit$ted on the f irst da of H$l 1500vide an!inCompanies "Amendment# Ordinance 150. "Ordinance ?o. === of 150# he :aBette of &a!istan, 8xtra &art = dated Han. ', 150 &ae. 5.

Omitted vide an!in Companies "Amendment# Ordinance, 15% "Ordinance ?o. FFF=9 of 15%# :aBette of &a!istan 8xtra,&art =, dated 2--15% &aes 135-1%4

Added vide an!in Companies "Amendment# Ordinance, 151 "Ordinance ?o. F9== of 151# he :aBette of &a!istan 8xtra,&art = ;a 11, 151 &ae. 51.

"1# =n s$b-section "1# of section 23, new cla$se "bb# inserted vide he an!in Companies "hird Amendment# Ordinance, 154"Ord. L9=== of 154#. he :aBette of &a!istan, 8xtra. &art =, dated 2%-12-154. &ae. ''4.

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"d.# with the previo$s permission in writin of the State an!, the carrinon of the b$siness of ban!in excl$sivel o$tside &a!istan

"dd# the cond$ct of an from of b$siness permitted b section 0K or=

"e# s$ch other p$rposes as are incidental to the b$siness of ban!in.

"2# Save as provided in s$b-section "1#, no ban!in compan shall hold shares inan compan whether as pledee, mortaee or absol$te owner, of an amo$nt exceedinthirt per cent of the paid-$p share capital of that compan or thirt per cent of its own paid-$p share capital and reserves, whichever is less)

&rovided that an ban!in compan which is on the date of commencement of thisOrdinance holdin an shares in contravention of the provisions of this s$b-section shall not

be liable to an penalt therefore if it reports the matter witho$t dela, to the State an! andif it brins its holdin of shares into conformit with the said provision within s$ch period,not exceedin two ears, as the State an! ma thin! fit to allow.

"3# Save as provided in s$b-section "1# and notwithstandin anthin contained ins$b-section "2#, a ban!in compan shall not, after the expir of one ear from the date ofcommencement of this Ordinance hold shares, whether as pledee, mortaee or absol$teowner, in an compan in the manaement of which an manain director or manaer of the

ban!in compan is in an manner concerned or interested.

2%. Res)ric)ions on loans an3 a35ance2"1# ?o ban!in compan shall

"a# ma!e an loans or advances aainst the sec$rit of its own sharesK or

"b# rant $nsec$red loans or advances to, or ma!e loans and advances onthe $arantee of .

"i# an of its directorsK

"ii# an of the famil members of an of its directorsK

"iii# an firm or private compan in which the ban!in compan or an ofthe persons referred to in s$b-cla$se "i# or s$b-cla$se "ii# is interestedas director, proprietor or partnerK or

=he word *or at the end of cla$se "d# omitted vide an!in and inancial Services "Amendment in Laws# Ordinance, 15%

"Ordinance ?o. L9== of 15%# :aBette of &a!istan, 8xtra. &art =, dated (ecember 31, 15% &aes /1 to /5'.

31


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"iv# an p$blic limited compan in which the ban!in compan or an ofthe persons as aforesaid is s$bstantiall interested.

"2# ?o ban!in compan shall ma!e loans or advances to an of its directors or toindivid$als, firms or companies in which it or an of its directors is interested as partner,director or $arantor, as the case ma be, witho$t the approval of the maorit of the directorsof that ban!in compan, excl$din the director concerned.

!=2 Po4er of S)a)e Ban0 )o con)rol a35ances 8y 8an0in- co+anies2>

"1#>henever the State an! is satisfied that it is necessar or expedient in the p$blic interestso to do, it ma determine the polic in relation to advances to be followed b ban!incompanies enerall or b an ban!in compan in partic$lar, and, when the polic has beenso determined, all ban!in companies or the ban!in compan concerned, as the case ma

be, shall be bo$nd to follow the polic as so determined.

"2# >itho$t pre$dice to the eneralit of the power conferred b s$b-section "1#,the State an! ma ive directions to ban!in companies either enerall or to an ban!incompan or ro$p of ban!in companies in partic$lar.

"a# as to the credit ceilins to be maintained, credit tarets to beachieved for different p$rposes, sectors and reions, the p$rposesfor which advances ma or ma not be made, the marins to bemaintained in respect of advances, the rates of interest, chares ormar!-$p to be applied on advances and the maxim$m or minim$m

profit sharin ratiosK and

"b# prohibitin the ivin of loans, advances and credit to anborrower or ro$p of borrowers on the basis of interest, either for aspecific p$rpose or for an p$rpose whatsoeverK and each ban!incompan shall be bo$nd to compl with an direction so iven.

"3# =f an defa$lt is made b a ban!in compan in complin with the policdetermined $nder s$b-section "1# or direction iven $nder s$b-section "2#, ever director andother officer of the ban!in compan and ever other person who is !nowinl a part tos$ch

S$bstit$ted vide an!in Companies "Amendment# Act, 1502, "Act ?o. FFF of 1502#he :aBette of &a!istan, 8xtra, &art =,dated October 1/, 1502-&ae 2%1.

or S$b-section "2# of section 2', s$bstit$ted vide, he an!in Companies "hird Amendment# Ordinance, 154. he:aBette of &a!istan 8xtra, &art =, dated 2%-12-1554 &ae ''4.

32


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defa$lt shall, b order of the State an!, be liable to a penalt of an amo$nt which maextend to Ptwent tho$sand r$pees and, where the defa$lt is a contin$in one, of a f$rtheramo$nt which ma extend to one tho$sand Pr$pees for ever da after the first d$rin whichthe defa$lt contin$es.

"%# >itho$t pre$dice to the provisions of s$b-section "3#, the State an! ma, forthe p$rposes of sec$rin implementation of an special credit schemes or monetar polic orobservance of credit ceilins b a ban!in compan, b order in writin re7$ire ban!incompanies enerall, or an ban!in compan in partic$lar, to ma!e special deposits with itfor s$ch amo$nt and on s$ch terms and conditions as ma be laid down b the State an! inthis behalf.

"'# he amo$nt deposited with the State an! $nder s$b-section "%# or an partthereof ma, at the discretion of the State an!, be released b it to the ban!in companwhich deposited it as and when the State an! deems fit either $nconditionall or on s$chterms and s$bect to s$ch conditions as the State an! ma, b order in writin, determine

from time to time.

"/# An penalt imposed $nder s$b-section "3# shall be paable on demand madeb the State an! and, in the event of ref$sal or fail$re b the director, officer or other personconcerned to pa on s$ch demand, shall be recoverable as arrear of land reven$e.

!=A2 Po4er of )7e S)a)e Ban0 )o collec) an3 f/rnis7 cre3i) infor+a)ion2*"1# 8verban!in compan shall f$rnish to the State an! credit information in s$ch manner as theState an! ma specif, and the State an! ma, either of its own motion or at the re7$est ofan ban!in compan, ma!e s$ch information available to an ban!in compan on

pament, of s$ch fee as the State an! ma fix from time to time)

&rovided that, while ma!in s$ch information available to a ban!in compan, theState an! shall not disclose the names of the ban!in companies which s$pplied s$chinformation to the State an!)

&rovided f$rther that, a ban!in compan which proposes to enter into an financialarranement which is in excess of the limit laid down in this behalf b the State an! fromtime to time shall, before enterin into s$ch financial arranement, obtain credit informationon the borrower from the State an!.P =n s$b-section "3# of section 2' for the words *two+ and five h$ndred+ the words * twent+ and *one tho$sand+ s$bstit$ted vide

Ordinance ?o. =F of 1550 dated 21-1-1550. he an!in Companies "Amendment# Act, 1550 dated 31-1-1550.

S$bstit$ted vide an!in Companies "Amendment# Act 1502 "Act ?o. FFF of 1502# Ghe :aBette of &a!istan, 8xtra &art =dated Oct. 1/, 1502 &ae. 2%1

S$bstit$ted for the oriinal Section 2' vide an!in Companies "Amendment# Ordinance, 1501 "Ordinance ?o. 9== of 1501#he :aBette of &a!istan, 8xtra, &art = dated ;arch 1', 1501 &ae. 254. "8ffective date of amendment is 1'-3-1501.

33


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"2# An credit information f$rnished b the State an! to a ban!in compan $nders$b-section "1# shall be treated as confidential and shall not, except for the p$rposes of thissection or with the prior permission of the State an!, be p$blished or otherwise disclosed.

"3# ?o co$rt, trib$nal or other a$thorit, incl$din an officer of :overnment shallre7$ire the State an! or an ban!in compan to disclose an information f$rnished to, ors$pplied b, the State an! $nder this section.

E:lana)ion2>or the p$rpose of this section,--

"a# *borrower+ means an person to whom an credit limit has beensanctioned b an ban!in compan, whether availed of or not, andincl$des

"i# in the case of a compan or corporation, its s$bsidiariesK

"ii#in the case of a


35/165

!=AA2 ; Preara)ion of secial reor)s2he State an! shall prepare, and s$bmitto the ederal :overnment, a special report ever ear on cases of write off of loans, mar!-$pand other d$es, or financial relief thro$h resched$lin and restr$ct$rin of loans ands$bsidised loans provided b the ban!in companies, in which established ban!in practices

or a$thorised proced$res have been departed from with a view to ca$sin wronf$l loss to theban! or conferrin wronf$l loss to the ban! or conferred wronf$l ain on an constit$ent.=f the matters raised in the report relate to p$blic interest, the ederal :overnment mas$bmit the report, or s$ch part of it as relates to p$blic interest, to &arliament or to theStandin Committee of a


36/165

shall not be earlier than six months after the date of the notificationK or

"2# discontin$e to accept an deposits or accept deposits onl $pon s$ch terms and$nder s$ch conditions as ma be specified in the notification)

&rovided that no s$ch notification shall be made earlier than threeears after the commencement of this Ordinance and the date specified in thenotification shall not be earlier than one ear from the date of the notification.

!A2 Deosi)s2>"1# (eposits of mone ma be accepted b a ban!in compan onthe followin basis)-

"i# on participation in profit and loss of the ban!in companK"ii# free of interest or ret$rn in an form, and

"iii# $ntil s$ch time as the ederal :overnment determines and notifies bp$blication in the official :aBette, that the domestic operations of the ban!in

companies have become free of interest, effective on and from the first of H$l,15'.

"2.#8ver ban!in compan receivin deposits on the basis of participation inprofit and loss shall maintain separate acco$nt in respect thereof as also ofinvestments made, finances provided o$t of the amo$nt of s$ch deposits, cashreserves and li7$id assets maintained there aainst and all income andexpendit$re relatin thereto.

"3# (eposits received on the basis of participation in profit and loss shall beinvested or emploed, at the absol$te discretion of the ban!in compan, onl

in transactions or b$siness the ret$rn on which does not accr$e to the ban!incompan b wa of interest.

"%# A person depositin mone with a ban!in compan on the basis ofparticipation in profit and loss shall be entitled, s$bect to s$ch eneraldirections as the State an! ma ive from time to time in the interest ofmonetar stabilit, to receive periodicall s$ch share

?o. S6O. /'"=#E' in the :aBette of &a!istan, 8xtra, &art-==, dated 3-0-15', &ae 1210. A new section 2/A inserted vide the an!in Companies "hird Amendment# Ordinance, 154 "Ord. L9=== of 154#. he :aBette

of &a!istan 8xtra. &art-=, dated 2%-12-4, &ae ''4.

3/


37/165

of the profit of the ban!in compan arisin o$t of s$ch transactions asma be determined b it and, in the event of loss inc$rred b the ban!incompan, shall be liable to bear proportionate loss.

!?2 #icensin- of 8an0in- co+anies2>"1# ?o individ$al or association orbod of individ$als, not bein a compan, shall carr on ban!in b$siness in &a!istanand, save as hereinafter provided, no compan shall carr on ban!in b$siness in&a!istan $nless it holds a licence iss$ed in that behalf b the State an!K and an s$chlicence ma be iss$ed s$bect to s$ch conditions as the State an! ma thin! fit toimpose.

"2# 8ver ban!in compan in existence on the commencement of thisOrdinance, before the expir of six months from s$ch commencement, and everother compan before commencin ban!in b$siness in &a!istan, shall appl inwritin to the State an! for a licence $nder this section)

&rovided that nothin in s$b-section "1# shall be deemed to prohibit a ban!incompan in existence on the commencement of this Ordinance from carrin on

ban!in b$siness $ntil it is ranted a licence in p$rs$ance of this section or is bnotice in writin informed b the State an! that a licence cannot be ranted to it)

&rovided f$rther that the State an! shall not ive a notice as aforesaid to aban!in compan in existence on the commencement of this Ordinance before theexpir of the period of two ears in the case of ban!in companies incorporated in&a!istan and of six months in the case of ban!in companies incorporated o$tside&a!istan referred to in s$b-section "1# of section 13 or of s$ch f$rther period as theState an! ma $nder the proviso to that s$b-section thin! fit to allow.

"3# efore rantin an licence $nder this section, the State an! mare7$ire to be satisfied b an inspection of the boo!s of the compan or otherwise thatall or an of the followin conditions are f$lfilled, namel)-

"a# that the compan is or will be in a position to pa its present orf$t$re depositors in f$ll as their claims accr$eK

"b# that the affairs of the compan are not bein or are not li!el to be

cond$cted in a manner detrimental to the interests of its present orf$t$re depositorsK

"c# that in the case of a compan incorporated o$tside &a!istan, the:overnment or law of the co$ntr in

S$bstit$ted for s$b-section "1# vide an!in Companies "Amendment# Ordinance, 1505 "Ordinance ?o. L9= of 1505#. he:aBette of &a!istan, 8xtra, &art =, dated Oct. , 1505&ae %55.

30


38/165

which it is incorporated provides the same facilities to ban!incompanies reistered in &a!istan as the :overnment or law of &a!istanrants to ban!in companies incorporated o$tside &a!istan and that thecompan complies with all the provisions of this Ordinance applicable

to ban!in companies incorporated o$tside &a!istan.

"%# he State an! ma cancel a licence ranted to a ban!in compan $nder thissection,>

"i# if the compan ceases to carr on ban!in b$siness in &a!istanK or

"ii# if the compan at an time fails to compl with an of the conditionsimposed $pon it $nder s$b-section "1#K or

"iii# if at an time, an of the conditions referred to in s$b-section "3#

ceases to be f$lfilled)

&rovided that before cancellin a licence $nder cla$se "ii# or cla$se "iii# of this s$b-section on the ro$nd that the ban!in compan has failed to compl with or has failed orceased to f$lfil an of the conditions referred to therein, the State an!, $nless it is of opinionthat the dela will be pre$dicial to the interest of the compan@s depositors or the p$blic,shall rant to the compan on s$ch terms as it ma specif, an opport$nit of ta!in thenecessar steps for complin with or f$lfillin s$ch condition.

"'# R An ban!in compan arieved b the decision of the State an! cancellina licence $nder this section ma, within thirt das from the date on which s$ch decision iscomm$nicated to it appl for review to the Central oard of the State an!.

"/# RR he decision of the State an! s$bect to the res$lt of review $nder s$b-section "'#, if an, shall be final.

; !?A2>Pro7i8i)ion of a35er)isin- for 3eosi)s an3 collec)ion2>

?otwithstandin anthin contained in an other law for the time bein in force, no compan,firm or person, not bein a ban!in compan or a corporation or a$thorit established b theederal :overnment or a compan d$l a$thorised in this behalf b the Controller of Capital=ss$es or the Corporate law A$thorit or the 6eistrar

R he words *appeal to the ederal :overnment+ were s$bstit$ted b the words *appl for revision to the Central oard of theState an!+ vide Ordinance ?o. =F of 1550 dated 21-1-1550.RR S$b-Section / was s$bstit$ted vide Ordinance ?o. =F of 1550 dated 21-1-1550. S$bstit$ted vide, he :aBette of &a!istan, 8xtra &art-=, dated 34-/-1554, &ae 25 to 34.

= he an!in Companies "Amendment# Act,1550 dated 31-'-1550.

3


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Co-operative Societies, shall solicit or invite deposits of mone from the p$blic thro$hadvertisements in the p$blic media or b postal circ$lars, handbills, displas in p$blic placesor b an other means, or collect or receive an deposits of mone in p$rs$ance thereof.

E:lana)ion2>or the p$rposes of this section, *deposits of mone+ shall be deemedto incl$de mone called, invited or collected for the p$rpose, or declared obect, ofinvestment or borrowin in an b$siness carried on, or proposed to be carried on, b thecompan, firm or person b whom, or on whose behalf, s$ch mone is called, invited,collected or received irrespective or the nat$re of the relationship, arranement or termsoffered or provided b s$ch compan, firm or person to the person ma!in the investment,deposits of mone or pament or of the basis or $nderstandin or which the mone is socalled, invited, collected or received.

!?B2 Disr/)i5e /nion ac)i5i)ies2> "1# ?o officer or member of a trade $nion in aban!in compan shall $se an ban! facilities incl$din a car or telephone to promote trade

$nion activities, or carr weapons into ban! premises $nless so a$thoriBed b themanaement, or carr on trade $nion activities d$rin office ho$rs, or s$bect ban! officialsto phsical harassment or ab$se and nor shall he be a person who is not an emploee of the

ban!in compan in 7$estion.

"2# An person violatin an of new, and transfer of s$b-section "1# shall be $iltof an offence p$nishable with imprisonment of either description which ma extend to threeears, or with fine, or with both.

!@2 Res)ric)ions on oenin- of ne4, an3 )ransfer of e:is)in- lace of 8/siness."1# ?o ban!in compan shall open a new place of b$siness in an part of &a!istan or

chane, otherwise than within the same cit, town or villae the location of an existin placeof b$siness sit$ated in an part of &a!istan and no ban!in compan incorporated in &a!istanshall open a new place of b$siness o$tside &a!istan or chane, otherwise than within thesame cit, town or villae in an co$ntr or area o$tside &a!istan, the location of an existin

place of b$siness sit$ated in that co$ntr area witho$t first obtainin the prior permission inwritin of the State an!.

"2# ?othin in this section shall appl to the openin for a period not exceedinone month of a temporar place of b$siness within a cit, town or villae or the environsthereof within which the ban!in compan alread has a place of b$siness, for the p$rpose ofaffordin ban!in facilities to the p$blic on the occasion of an exhibition, a conference or amela or an other li!e occasion)

&rovided intimation of s$ch openin is iven to the State an! within one wee! of thedate of openin.

he an!in Companies "Amendment #Act 1550 dated 31-'-1550.

35


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E:lana)ion2or the p$rpose of this section

"a# *place of b$siness+ incl$des an s$b-office, pa-office, s$b-pa office andan place of b$siness at which deposits are received, che7$es cashed or

mones lentK

"b# *new place of b$siness+ incl$des a place of b$siness which is reopenedafter bein temporaril closed.

"3# he State an! ma, before ivin the permission referred to in s$b-section"1# of this section to an ban!in compan, re7$ire to be satisfied b an inspection $ndersection %4 or otherwise reardin s$ch aspects of the compan@s affairs as the State an!ma deem necessar.

25. Main)enance of li/i3 asse)s2*"1# 8ver ban!in compan *and ever

financial instit$tion specified in section 3A+ Ushall maintain in &a!istan in cash, old or$nenc$mbered approved sec$rities val$ed at a price not exceedin *the lower of the cost or+ Uthe c$rrent mar!et price an amo$nt which shall not at the close of b$siness on an da be lessthan *s$ch percentae+ U of the total of its time and demand liabilities in &a!istan, as ma benotified b the State an! from time to time.

&rovided that the State an! ma separatel specif for ban!in companies orfinancial instit$tions the applicable percentae either in eneral or in relation to an class of

ban!in companies or an class of financial instit$tions or to an ban! or financial instit$tionin partic$lar.

E:lana)ion2>or the p$rpose of this section, *$nenc$mbered approved sec$rities+of a ban!in compan *or financial instit$tion+ Ushall incl$de its approved sec$rities lodedwith another instit$tion for an advance or an other credit arranement to the extent to whichs$ch sec$rities have not been drawn aainst or availed of Qand the liabilities shall not incl$dethe paid $p capital or the reserves or an credit balance in the profit and loss acco$nt of thean!in compan or, as the case ma be, the financial instit$tion or an s$ch liabilities asma be notified b the State an! for the p$rposes of this section@ .U

"2# =n comp$tin the amo$nt provided for in s$b-section "1#, an deposit re7$ired$nder the proviso to s$b-section "3# of section 13 to be made with the State an! b a

ban!in compan incorporated o$tside &a!istan and an balances maintained in &a!istan b aban!in compan in c$rrent acco$nt with the State an! or its aent or both, Ior in profit andloss sharin term deposit acco$nt with the State an!,J incl$din in the case of asched$led ban! the balance re7$ired

C( Circ$lar ?o.13 dated 1/thA$$st 1503, ?otification ?o.S.6.O. 124' "1# 03 dt.1' thA$$st 1503 he :aBette of &a!istan,8xtra, &art == A$$st 1/, 1503&ae 10%.

Acolon s$bstit$ted b the an!in Companies "Amendment# Act, 15/' "0 of 15/'#. =n s$b-section "1# for the f$ll stop. 8ffectivedate of amendment is 31-0-15/'.

=nserted vide the an!in Companies "hird Amendment# OrdinanceK 154. "Ord. L9=== of 154# he :aBette of &a!istan 8xtra,&art 1, dt. 2%-12-4. &ae. ''1.U =nserted E S$bstit$ted vide an!in Companies "Amendment# Ordinance ?o. FF=F of 1553, dated '-14-53.R he words *as ma be notified b the State an! from time to time.+ added vide Ordinance ?o. L=9 of 155'

dated 13-'-155'.

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to be so maintained $nder s$b-section "1# of section 3/ of the State an! of &a!istan Act,15'/ "FFF=== of 15'/#, shall be deemed to be cash maintained.

"3# 8ver ban!in compan shall, before the close of the month s$cceedin themonth to which the ret$rn relates, f$rnish to the State an! a monthl ret$rn in the prescribedform and manner showin partic$lars of the compan@s assets maintained in accordance with

this section and its time and demand liabilities in &a!istan at the close of b$siness on eachh$rsda=d$rin the month, or if an h$rsda= is a p$blic holida $nder the ?eotiable=nstr$ments Act, 11 "FF9= of 11#, at the close of b$siness on the precedin wor!inda.

(2 Asse)s in Pa0is)an. "1# At the close of b$siness on an da the assets in&a!istan of ever ban!in compan shall not be less in val$e than an amo$nt representins$ch percentae of its time and demand liabilities in &a!istan as ma be prescribed b theState an! from time to time provided that the percentae so prescribed shall not exceedeiht five per cent.

"!%8ver ban!in compan shall, before the close of the month s$cceedinthat to which the ret$rn relates, f$rnish to the State an!, in the prescribed form and mannera monthl ret$rn showin partic$lars of the compan@s assets maintained in accordance withthis section and its time and demand liabilities in &a!istan at the close of b$siness in everh$rsda or if an h$rsda is a p$blic holida $nder the ?eotiable =nstr$ments Act,11 "FF9= of 11#, at the close of b$siness, on the precedin wor!in da.

"(% or the p$rposes of this section"a# *assets in &a!istan+ shall be deemed to incl$de export bills drawn in, and

import bills drawn on and paable in &a!istan and expressed in s$chc$rrencies as the State an! ma from time to time approve in this behalf and

also s$ch sec$rities as the State an! ma approve in this behalfnotwithstandin that all or an of the said bills or sec$rities are held o$tside&a!istan, b$t shall excl$de s$ch assets as in the opinion of the State an!cannot properl be rearded as assetsK

"b# *liabilities in &a!istan+ shall not incl$de the paid-$p capital or the reservesor an credit balance in the profit and loss acco$nt of the ban!in compan.

MMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMM=S$bstit$ted for the word *rida+ and shall be deemed to have been so s$bstit$ted on the first da of H$l 1500 vide an!in

Companies "Amendment# Ordinance, 150 "Ordinance ?o. === of 150#. he :aBette of &a!istan 8xtra, &art =, dt. Han. ', 150 &ae. 5

S$bstit$ted vide an!in Companies "Amendment# Ordinance 150. "Ordinance ?o. === of 150# he :aBette of &a!istan,

8xtra, Han$ar ', 150 &art = pae. 5. 8ffective date of s$bstit$tion is 1stH$l 1500.

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(12 Unclai+e3 3eosi)s an3 ar)icles of 5al/e2>"1% 67ere>

"a# a debt paable in &a!istan c$rrenc is owin b a ban!in compan b reasonof a deposit, not bein a deposit in the name of a minor or a :overnment or aco$rt of law, at a branch of the ban!in compan in &a!istan in respect of

which no transaction has ta!en place and no statement of acco$nt has beenre7$ested or ac!nowleded b the creditor d$rin a period of ten earsrec!oned

"i# in the case of a deposit made for a fixed period, from the da onwhich the fixed period terminated, and

"ii# in the case of an other deposit, from the da on which the lasttransaction too! place or a statement of acco$nt was last re7$ested orac!nowleded b the creditor, whichever is laterK or

"b# a dividend, bon$s, profit or other s$m of mone whatsoever which hasbecome d$e on a deposit and remained $npaid or $nac!nowleded b thecreditor for period of ten ears rec!oned from the date on which thedividend, bon$s, profit or other s$m of mone, as the case ma be, becamed$e and paableK or

"c# a che7$es, draft or bill of exchane incl$din an instr$ment drawn b onebranch of the ban!in compan $pon another s$ch branch paable in&a!istan c$rrenc has been iss$ed, certified or accepted b a ban!incompan at a branch of the ban!in compan in &a!istan and no pamenthas been made in respect thereof for a period of ten ears from the date ofiss$e, certification or acceptanceK or

"d# a sec$rit share, oods or an val$able article, hereinafter collectivel andindivid$all called article, lin in safe c$stod with a ban!in companhas not been inspected or ac!nowleded b the person who deposited thearticle with the ban!in compan for a period of ten ears from the da onwhich it was last inspected or ac!nowleded b s$ch personK

the ban!in compan shall ive forthwith a three months@ notice in writin b reistered postac!nowledement d$e to the creditor or the beneficiar of the che7$e, draft or bill of

exchane or the person in whose name the article stands in the boo!s of the ban!in companon his address last made !nown b him to the ban!in compan, and if on the expir of thethree months@ period no ac!nowledement or repl is received from the addressee, the

ban!in compan shall pa or deliver, as the case ma be, to the State an! an amo$nt e7$alto the amo$nt, owin b the ban!in compan in respect of the debt or to the amo$nt thatwo$ld be owin if the instr$ment had been presented for pament, incl$din interest, if an,or the article, in accordance with the terms of the debt or instr$ment or of the arranement$nder which the article is lin in the safe c$stod of the ban!in compan, an pament ordeliver accordinl shall dischare the ban!in compan from all liabilities in respect of thedebt

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or instr$ment or to the amo$nt that wo$ld be owin if the instr$ment had been presented forpament, incl$din interest, if an or the article, in accordance with the terms of the debt orinstr$ment or of the ban!in compan, and pament or deliver accordinl shall discharethe ban!in compan from all liabilities in respect of the debt or instr$ment or article, as the

case ma be."2# A notice re7$ired to be iven b s$b-section "1#

"a# ma, in the case of a firm or a


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"%# As soon as an amo$nt is paid b a ban!in compan to the State an! $nders$b-section "1#, it shall cease to bear interest or ran! for a share of profit or lossTnotwithstandin anthin to the contrar contained in the terms of the debt or instr$ment or

an law for the time bein in force.

"'# >here an ban!in compan has paid an amo$nt or delivered an article to theState an! $nder s$b-section "1#, the ban!in compan shall preserve and contin$e to

preserve all sinat$re cards and sinin a$thorities and other doc$ments relatin to the debtor instr$ment or article, as the case ma be, $ntil it is informed b the State an! in writinthat the need not be preserved an loner.

"/# ?othin in the Limitation Act, 154 "=F of 154#, or in an other law for thetime bein in force shall affect the liabilit of a ban!in compan toward the State an!$nder s$b-section "1#.

"0# 8ver ban!in compan shall, within thirt das after the close of eachcalendar ear, s$bmit to the State an! a ret$rn in the prescribed form and manner of all$nclaimed amo$nts and articles remainin $npaid or $ndelivered, as the case ma be, in the

boo!s of the ban!in compan, after the expir of ten ears as rec!oned $nder s$b-section"1#.

"# he State an! shall p$blish in the :aBette of &a!istan and not less than twonewspapers once each 7$arter for a period of one ear a list of the amo$nts and articlesreceived b the State an! $nder s$b-section "1# and not claimed b an person)

&rovided that it shall not be necessar to incl$de in a list so p$blished s$ch amo$ntsand articles of s$ch val$e as the ederal :overnment ma from time to time determine.

"5# An ban!in compan which has paid an amo$nt or delivered an article tothe State an! in accordance with s$b-section "1# ma, within thirt das from the date ofs$ch pament or deliver, as the case ma be, s$bmit to the State an! its claim as reardslien, co$nter-claim or riht of set-off in relation to the amo$nt so paid or article so delivered.

"14# An person who claims to be entitled to an mone or article paid or deliveredto the State an! $nder s$b-section "1# ma s$bmit his claim to the State an!.

=nserted vide the an!in Companies "hird Amendment# Ordinance, 154 "Ord. L9=== of 154#.he :aBette of &a!istan 8xtra, &art = dt. 2%-12-4 &ae ''1.

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"11# S$bect to s$b-sections "5#, "12# and "1%#, the State an! ma pass s$ch orderon a claim s$bmitted to it $nder s$b-section "5# or s$b section "14# as it ma deem fit, and,where the State an! ma!es an pament or delivers an article to an person s$bmittin aclaim $nder s$b-section "14# a receipt iven b him shall be a ood dischare to the State

an!.

"12# =f an action involvin a disp$te abo$t the ownership of an amo$nt orarticle

paid or delivered to the State an! $nder s$b-section "1# is pendin in an co$rt before theexpir of one ear followin the ear in which the amo$nt or article is so paid or delivered tothe State an! and the State an! receives an intimation from the co$rt or otherwise abo$ts$ch disp$te, it shall retain the amo$nt or article in the c$stod and dispose of it inaccordance with the decision of the co$rt.

"13# S$bect to s$b-sections "5#, "12# and "1%#, an amo$nt or article in respect

ofwhich no claim is preferred or abo$t the disposal of which no information is received froman person before the expir of one ear followin the ear in which the amo$nt or article isreceived b the State an! shall, on the expir of the said period of the said period of oneear, cease to be climbable and shall, become the absol$te propert of and vest.

"a# in the :overnment of the &rovince in the territor of which the debt orinstr$ment was paable or, as the case ma be the article was to bedelivered, and

"b# in the ederal :overnment in an other case.

"1%# ?otwithstandin anthin contained in s$b-section "1# abo$t the ivin ofa

notice b a ban!in compan to an creditor or beneficiar of an che7$e, draft or in s$b-section "# abo$t the p$blication b the State an! of the list of $nclaimed amo$nts orarticles, the proced$re to be followed and the manner of disposal of debts, instr$ments andarticles in a case where the person concerned is not for the time bein residin in &a!istanshall be s$ch as ma be determined b the ederal :overnment from time to time.

"1'# An decision of the State an! $nder s$b-section "11# abo$t theacceptance,

satisfaction or otherwise of the lien, riht of set-off or co$nter-claim of a ban!in companor, as the case ma be, the entitlement of an person to an mone or article received b theState an! $nder s$b-section "1# shall be final and shall not, except as provided in s$b-section "1/#, be called in 7$estion in an manner b or before an co$rt, trib$nal or othera$thorit.

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"1/# An person arieved b a decision of the State an! $nder s$b-section "11#ma, within one month from the date of the decision, prefer an appeal to s$ch officer of theState an! s$perior in ran! to the officer b whom the decision appealed aainst was ivenas ma be a$thorisd in this behalf b the :overnor or the State an!.

"10# or the p$rpose of ad$dicatin and determinin an claim $nder s$b-section

"5# or s$b-section "14# or decidin an appeal $nder s$b-section "1/# the State an! shallfollow s$ch proced$re as ma be prescribed and shall have the same powers as are vested in aco$rt $nder the Code of Civil &roced$re, 154 "Act 9 of 154#, when trin a s$it in respectof the followin matters, namel)-

"a# enforcin the attendance of an person and examinin him on oathK

"b# compellin the prod$ction of doc$ments and materials obectsK and

"c# iss$in commissions for the examination of witnesses.

"1# An proceedin before the State an! $nder this section shall be deemedto

be a *$dicial proceedin+ within the meanin of section 22 of the &a!istan &enal Code " ActFL9 of 1/4#, and the State an! shall, for the p$rposes of an s$ch proceedin, be deemed

to be a *Civil Co$rt+ within the meanin of section %4 of the Code of Criminal &roced$re,15"Act 9 of 15#.

"15# ?o co$rt fee shall be paable for filin, exhibitin or recordin andoc$ment

in, or obtainin an doc$ment from, the State an! in an proceedin $nder this section.

32. 'alf*yearly re)/rns an3 o4er )o call for o)7er re)/rns an3 infor+a)ion2*"1# 8ver ban!in compan shall, before the close of the month s$cceedin the half-ear towhich the ret$rn relates s$bmit to the State an! a half-earl ret$rn in the prescribed formand manner showin its assets and liabilities in &a!istan as the stood at the close of b$siness

on the thirtieth da of H$ne in the first half and the thirt-first da of (ecember in the secondhalf of the ear.

"!% he State an! ma, at an time, b notice in writin, re7$ire ban!in companiesenerall, or an ban!in compan in partic$lar to f$rnish it within the time specified thereinor s$ch f$rther time as the State an! ma allow, with an statement or information relatinto the b$siness or affairs of s$ch ban!in compan or companies "incl$din an b$siness oraffairs with which s$ch ban!in S$bstit$ted vide an!in Companies "Amendment# Act, 1502 "Act ?o. FFF of 1502#. he :aBette of &a!istan 8xtra &art =dated October 1/.1502MMM&ae 2%3.

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compan or companies is or are concerned# and, witho$t pre$dice to the eneralit ofthe foreoin power, ma call for information, at s$ch intervals as the State an! ma deemnecessar, reardin the investment of ban!in companies and the classification of theiradvances in respect of ind$str, commerce and aric$lt$re.

33. Po4er )o /8lis7 infor+a)ion. he State an!, if it considers it in thep$blic interest so to do, ma p$blish an information obtained b it $nder this Ordinance ins$ch consolidated form as it thin!s fit.

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Banking Companies Ordinance

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