Securities and Exchange Commission of Pakistan (SECP) is revamping the regulatory regime for brokers of stock exchanges to bring it in line with best practices, standards and IOSCO principles. Proposed regime reinforces reforms undertaken during recent times. It is aimed at strengthening procedures and processes at stock exchanges, sound reporting system at brokerage houses and risk-based exposure by brokers to bring in more protection for investors as well as brokerage community.
During last decade, capital markets in Pakistan have adopted various proficient international practices, standards and policies to align themselves with other regional markets. However, existing broker regime could not be altered to provide impetus to these developments. SECP has, therefore, decided to alter the regime to incorporate stipulations of different legal and regulatory changes made during the past few years. After a thorough review, a paper specifying concept of revised Broker Registration Regime has been prepared by SECP. According to the concept paper, revised regime will provide an adequate regulatory framework for corporate brokerage houses, having a strong organisational structure with clear lines of responsibility and authority.
