The Securities and Exchange Commission of Pakistan (SECP) has revised the financial resource requirements for the new applicants seeking license for futures exchange.
The SECP has issued S.R.O. 561(I)/2022 to amend the Futures Exchanges (Licensing and Operations) Regulations 2017.
According to the revised regulations, an applicant seeking a license of futures exchange including existing futures exchange, offering contracts based on commodities and financial instruments, shall have a minimum net worth of Rs. 500 million. Provided that an existing futures exchange shall have three years to comply with this requirement.
Through the new amendment, the SECP has withdrawn the said condition of three years. Now, an existing futures exchange shall comply with this requirement within the timeline specified by the Commission, SECP added.
Under the existing regulations, a securities exchange applying for license of a futures exchange under regulation shall have an initial paid-up capital and net worth of not less than rupees one billion provided that the Commission may require the applicant to achieve and maintain, as a licensing condition, a higher paid-up capital and net worth in a progressive manner. Provided that such securities exchange shall maintain such paid-up capital in addition to the paid-up capital specified under the Securities Exchanges (Licensing and Operations) Regulations, 2016.