KARACHI, July 23: The State Bank may relax rules of business for mini exchange companies or exchange companies in B category. Heads of these companies received an indication in this regard from State Bank Governor Dr Ishrat Husain whom he met at the SBP headquarters here on Friday.

But at the same time these companies will have to computerize and document their operations within one year. President of Association of All Pakistan Exchange Companies (B) Hanif Gohar said Dr Husain assured heads of these companies that the condition of squaring their positions daily may be relaxed.

Currently mini exchange companies - 33 in number - are required to sell stocks of foreign exchange to banks or principal exchange companies at the end of the day to square their buying/selling position.

"We told the governor it was practically very difficult because of wild fluctuations in the exchange rate of euro and pound sterling," said Mr Gohar. He said the governor promised to look into it and relax the rule.

Mini exchange companies also demanded that they be allowed to arrange DDs and TTs as well as travellers' cheques for their customers from principal exchange companies. Mr Gohar told Dawn that the SBP chief promised to consider this demand as well.

According to the rules, mini exchange companies that have replaced money changers cannot issue demand drafts or DDs, telegraphic transfers or TTs as well as travellers' cheques but principal exchange companies can.

Mini exchange companies are supposed to deal in cash local and foreign currencies only. Heads of more than a dozen principal exchange companies or exchange companies in A category were also attended the meeting.

Sources privy to the meeting told Dawn that the SBP chief warned mini exchange companies to fully computerize and document their businesses within a year.

He also asked them to appoint qualified staff for this purpose. The sources said the SBP governor urged both principal and mini exchange companies to learn to operate in a corporate culture.