SECP proposes new brokers regime for stock market brokers
KARACHI: The Securities and Exchange Commission of Pakistan (SECP) has proposed new brokers regime for stock market brokers with financial resource requirements, and in notice sent to the Pakistan Stock Exchange (PSX), has asked all market participants to share the comments and feedback.
The notice to the PSX also includes details of the new regime, the highlight of which is that brokers would now be divided into three categories — Trading and Clearing Broker (TC), Trading and Self Clearing Broker (TSC), and Trading Only Broker (TO).
Under the new financial resource requirements proposed for brokers, net worth of TC broker licence would be Rs500 million and above.
The net worth of TSC broker license would be Rs150 million and above, and net worth of TO broker license would be Rs15 million and above.
According to the new regime, the requirement for at least Rs150 million net worth for keeping custody of client assets shall be applicable on the basis of financial statements of December 30, 2019 and shall be implemented from March 31, 2020.