GOVERNMENT OF PAKISTAN
SECURITIES AND EXCHANGE COMMISSION OF PAKISTAN -.-.-.-

Islamabad, the 14th March, 2023

NOTIFICATION

S.R.O. 360 (I)/2023.- In exercise of powers conferred by section 169 of the Securities Act, 2015 (III of 2015) and section 114 of the Futures Market Act, 2016 (XIV of 2016), the Securities and Exchange Commission of Pakistan hereby makes the following amendments to the Securities Brokers (Licensing and Operations) Regulations, 2016, the same having been previously published in the official Gazette vide S.R.O. 2191 (I)/2022 dated 5th December, 2022 and placed on its website as required under sub-section (4) of section 169 of the Securities Act, 2015 and sub-section (4) of section 114 of the Futures Market Act, 2016, namely:-

In the aforesaid Regulations, -

(1) in regulation 7, -

(a) in sub-regulation (4), -

    (i) in clause (a), -

      (I) for the words “Broker Fiduciary Rating, as may be specified by the Commission,” the expression “Broker Fiduciary Rating of BFR 3” shall be substituted and thereafter, before the existing proviso, the following new proviso shall be added, namely: -

“Provided that all existing brokers licensed as Trading and Self-Clearing shall obtain Broker Fiduciary Rating within such time as may be specified by the Commission;”;

      (II) the existing proviso shall be substituted by the following: “Provided further that in case where the Trading and Self Clearing Broker has not obtained the Broker Fiduciary Rating within such time as may be specified by the Commission, reduced limits of assets under custody as provided in sub-regulation 1B of regulation 6 shall be applicable and disciplinary action under the Act and the Futures Market Act, 2016 may be taken.”; and

(b) in sub-regulation (5), in clause (d), for the words “Broker Fiduciary Rating, as may be specified by the Commission,” the words “Broker Fiduciary Rating of BFR 2” shall be substituted; and

(2) regulation 37 shall be omitted.

[File No. SMD/SE/2(20)/2020]