Regulatory Alerts2018-08-31
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 and net worth of at least one billion rupees, with existing entities required to reach four billion and seven billion rupees respectively within five years. The regulations impose strict shareholding limits, capping collective securities exchange ownership at forty percent, foreign holdings at twenty percent, and individual non-exchange shareholders at fifteen percent. Central depositories must maintain fit and proper criteria for all directors and senior management, ensure adequate infrastructure and cyber security, and obtain prior Commission approval for any changes to their memorandum of association or share transfers.