Trading, self-clearing category of securities brokers: SECP lays down additional requirements for seeking licences

The Securities and Exchange Commission of Pakistan (SECP) has laid down additional requirements for seeking licenses under Trading and Self-Clearing category of securities brokers. The SECP has proposed new conditions under SRO 1194(I)/2017 to amend Securities Brokers (Licensing and Operations) Regulations, 2016 here on Friday.
Additional requirements for license under Trading and Self-Clearing category: License for Trading and Self-Clearing category shall only be granted to an applicant which fulfills the following additional conditions: Firstly, it has been admitted as a clearing member by the clearing house and a participant by the central depository and secondly, it will convert into public company, if already not a public company or get itself listed on the securities exchange or meet disclosure and reporting requirements as applicable to a public interest company under the Companies Act as may be required by the Commission from time to time.
The SECP further said that the securities brokers or futures brokers licensed under the Trading and Self-Clearing category shall, from the date as may be specified by the Commission from time to time, obtain management rating on annual basis from a credit rating company licensed by the Commission and disclose such rating at all times on their websites and all advertisements.
A securities broker or futures broker whose license is cancelled under sub-regulation (3) shall inform all its existing customers, settle all dues of the customers within fifteen days and shall remain responsible for clearing and settlement of all its obligations up to the date on which it has been working as a securities broker or futures broker.
The Commission shall send an intimation of cancellation of license of a securities broker or futures broker to the securities exchange or futures exchange, clearing house and central depository and may also publish the order of cancellation in a newspaper of wide circulation in Pakistan, the SECP added.