Regulatory Alerts2017-06-23
Added · Updated
Futures Exchanges (Licensing and Operations) Regulations, 2017
The Securities and Exchange Commission of Pakistan establishes licensing requirements for futures exchanges, mandating an initial application fee of five million rupees and an annual renewal fee of 1.5 million rupees. Entities must maintain a minimum net worth of one billion rupees if also holding a securities exchange license, or 500 million rupees otherwise, with existing exchanges granted a three-year compliance period. The regulations impose ongoing operational conditions including robust risk management, cyber security controls, and the establishment of settlement guarantee and investor protection funds. Governance structures are strictly defined, requiring a board of at least seven directors with one-third being independent, prior Commission approval for senior management appointments, and adherence to specific fit and proper criteria.