Draft Amendments to Futures Brokers Licensing Regulations

GOVERNMENT OF PAKISTAN
SECURITIES AND EXCHANGE COMMISSION OF PAKISTAN -.-.- Islamabad, the 19th September, 2023 NOTIFICATION S.R.O. 1350 (I)/2023.- The following draft amendments to the Futures Brokers (Licensing and Operations) Regulations 2018, proposed to be made by the Securities and Exchange Commission of Pakistan in exercise of powers conferred by section 114 of the Futures Market Act, 2016 (XIV of 2016) are hereby published for information of all persons likely to be affected thereby and notice is hereby given that comments, if any, received by the Commission within fourteen days from the date of placement of the draft amendments on the website of the Commission will be taken in to consideration, namely:- DRAFT AMENDMENTS In the aforesaid Regulations, - (1) in regulation 2, in sub-regulation (1), after clause (d), the following new clauses shall be inserted:
“(da) “Agri-Only futures broker” mean a sub-category of futures broker, which can execute trades only to the extent of futures contracts based on local agricultural commodities including Electronic Warehouse Receipt based futures contracts. (e) “Electronic Warehouse Receipt” has the same meaning as defined in Collateral Management Companies Regulations, 2019.”; (2) in regulation 4, in sub-regulation (1), in clause (c), after the word “company”, a comma shall be inserted and thereafter the expression, “except in case of Agri￾Only category” shall be inserted; (3) after regulation 4, amended as aforesaid, the following new regulation shall be inserted, namely: - “4A. Requirements applicable to Agri-Only category of futures brokers. – All regulations applicable to a futures broker shall be applicable to the sub-category i.e. Agri-Only futures brokers, except where specifically provided otherwise in the regulations.”; (4) in regulation 7, for sub-regulation (1), the following shall be substituted, namely:-