Regulatory Alerts2022-11-02
Added · Updated
Securities Brokers (Licensing and Operations) Regulations, 2016
These regulations establish the licensing framework and operational requirements for securities brokers in Pakistan, prohibiting unlicensed entities from performing such functions. Applicants must obtain prior Commission permission, hold a valid Trading and Clearing Establishment certificate, and ensure sponsors retain at least 51% of share capital with a minimum 20% board representation. The rules mandate that sponsors and senior management meet fit and proper criteria, maintain net worths at least twice the paid-up capital, and have no controlling interests in other licensed brokers. Licensed brokers are permitted to undertake futures contracts based on securities and financial instruments, while separate regulations govern futures brokers dealing in commodities.