Regulatory Alerts2023-02-28
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. CMCs are authorized to manage produce as collateral, issue electronic warehouse receipts, and accredit warehouses, while being mandated to maintain records for at least ten years and comply with corporate governance standards. The framework defines the duties of CMCs, including inspection powers and liability for outsourced functions, and sets forth the accreditation criteria for warehouses and operators.
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