Regulatory Alerts2016-02-15
Added · Updated
Central Depositories (Licensing and Operations) Regulations, 2016
The Securities and Exchange Commission of Pakistan establishes licensing requirements for central depositories, mandating an initial paid-up capital of one billion rupees and a net worth of one billion rupees, with existing entities required to meet higher thresholds of four billion and seven billion respectively within five years. The regulations restrict shareholding to specific financial institutions and impose limits, including a maximum of forty-nine percent for non-exchange shareholders and fifteen percent for any single shareholder other than a securities exchange. Central depositories must maintain fit and proper directors, ensure cyber security and business continuity plans, and provide insurance coverage for beneficial owners against losses caused by negligence or default.