SECP Canceled 93 Brokers’ Licenses During the Last Fiscal Year

The Securities and Exchange Commission of Pakistan (SECP) has canceled licenses of 93 securities brokers during 2016-17.

SECP’s annual report 2017 revealed that during 2016-17, licenses of 93 securities brokers were canceled.

Licences of 39 securities brokers were cancelled due to SECP’s refusal of their applications whereas the rest were cancelled due to either relinquishment/surrender of Trading Right Entitlement Certificate of the securities broker, or failure of the securities broker to apply for renewal of licence or for being declared a defaulter by the securities exchange.

Following the circulation of the Securities Brokers (Licensing and Operations) Regulations, 2016 on June 30, 2016, all the brokers registered under the Brokers and Agents Registration Rules, 2001 were deemed to be licensed as securities broker under these regulations and their annual renewal applications were processed in accordance with the requirement of these regulations.

Whereas, agents are required to be registered with the SECP under the Brokers and Agents Registration Rules, 2001. Presently registration as a commodity broker is being issued under the Commodity Exchange and Futures Contract Rules, 2005, SECP added.

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