Regulatory Alerts2019-08-02
Added · Updated
Collateral Management Companies Regulations, 2019
The Securities and Exchange Commission of Pakistan establishes regulations for the formation, registration, and operation of Collateral Management Companies (CMCs), requiring a minimum paid-up capital of two hundred million rupees. The rules define CMC duties including warehouse accreditation, issuance of electronic warehouse receipts, and record-keeping obligations, while mandating that CMCs maintain fit and proper directors and submit monthly reports to the Commission. The regulations also set specific standards for warehouse accreditation, outline the cancellation procedures for accreditation certificates, and govern the transferability of electronic warehouse receipts on futures exchanges.