SECP issues requirements to undertake DAMS by Digital AMC

ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has issued requirements to undertake Digital Asset Management Services (DAMS) by the Digital Asset Management Company (Digital AMC).

On Tuesday, the SECP issued an S.R.O.1438 (I)/2025 to amend the Non-Banking Finance Companies and Notified Entities Regulations, 2008.

According to the regulations, the “Digital Platform” means tool/ application/ software/ solution which uses digital/ IT as the primary interface between the Digital AMC, Investor/ Unit holder and other parties involved in the process of offering DAMS and includes mobile phone application, web-based portal, internet-based channels, digital distribution/ aggregation platforms and other enabling or supplementing support services.

The new procedure shall apply to Digital AMCs for the provision of DAMS and digital services offered by the Asset Management Companies using or intending to utilise Digital Platforms for the provision of their services to the customers/ investors. The requirements shall apply to all Digital Platforms being administered, managed, and/or owned by the Digital AMCs.

The eligibility requirements revealed that a Fund Management NBFC, after the grant of permission in terms of Rule 4 of the Rules, shall, in addition to compliance of all requirements/ conditions for grant of a license as provided in Rule 5 of the NBFC Rules, shall clearly mention the intention to obtain a license for undertaking DAMS in Form II of the NBFC Rules.

The SECP may, if so satisfied, grant an AMS license conditional on the restriction that such Asset Management Company (AMC) shall be eligible to provide DAMS only through digital platforms.

A Fund Management NBFC desirous to engage in the business of DAMS, shall, along with its application for the grant of a license, submit a viable business plan and comprehensive financial projections supported by underlying assumptions for a minimum of five years from the commencement of business, where such business plan shall encompass, but not be restricted to, the following aspects. The Digital AMC shall adhere to all the applicable requirements as applicable for a conventional AMC under the NBFC Regulations, Circulars and Directives, unless expressly modified or relaxed by the above-stipulated requirements, SECP added.

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