KARACHI, April 8: The State Bank on Thursday decided to give a regularization period up to December 31, 2004 to banks/ development finance institutions (DFIs) for all those subsidiaries which were established before the issuance of BPD Circular No.7 dated March 8, 2004.

According to a BPD Circular letter No.10 issued here on Thursday, the SBP drew the attention of the chief executives of all banks and DFIs towards the instructions issued vide BPD Circular No.7 dated March 8, 2004 regarding the establishment of subsidiaries by banks/DFIs in regard to establishment of subsidiaries and their regularization.

The SBP maintained that some of the banks/DFIs, which had already established subsidiaries, have approached the SBP, requesting for grant of some time for regularization of the position in accordance with the instructions contained in the circular.

The SBP considered the matter and decided to extend the date for the purpose. "From Jan 1, 2005, the banks/ DFIs shall ensure full compliance with the instructions given in the said circular with regards to these subsidiaries," the SBP concluded. -APP