SECP revises eligibility criteria for licensing of securities’ brokers

ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has abolished condition for obtaining prior permission from the commission for persons interested in performing the function of securities brokers under the categories of “Trading only” and “Online-only”.

The SECP has issued draft amendments to the Securities Brokers (Licensing and Operations) Regulations, 2016 through a notification issued on Monday.

The SECP has proposed to revise eligibility criteria for licensing of securities brokers with the commission.

Under the revised regulations, the requirement for obtaining prior permission shall not apply to a person desirous of performing function of securities broker under the category of “Trading only”, which also includes “Online-only” category.

As per prior-permission from the Commission to undertake Securities Broker activity, a person desirous of performing the functions of Securities broker shall, before obtaining “TRE Certificate” of a securities exchange, make an application to the Commission as set out in Form A-1 along- with the documents specified in Annexure A-1. The said condition has proposed to be not applicable on the persons desirous of performing function of securities broker under the category of “Trading only” and “Online-only” category.

Under the eligibility criteria for licensing of a securities broker, a person holding a valid license to act as a Futures Broker under Futures Brokers (Licensing and Operations) Regulations, 2018 may apply for license as a securities broker without prior permission of the Commission under these regulations.

Copyright Business Recorder, 2023