The Securities and Exchange Commission of Pakistan (SECP) has issued a list of 197 active securities brokers of the Pakistan Stock Exchange (PSX) Limited for the information of the general public.
The updated SECP list revealed the name of the PSX broker, Trading Rights Entitlement (TRE). certificate holders, and the period of valid license and status of the brokers. The list showed that the said 197 stock market brokers have an “active” status as per SECP’s record.
The SECP list also mentioned the TRE registration number of each broker of the PSX.
The SECP has recently approved the regulatory framework for online-only brokers through amendments to the Pakistan Stock Exchange (PSX) Rulebook, paving the way for the launch of Online Only Brokers in Pakistan. Cognizant of the growing demand for online investing platforms, the SECP is committed to promoting innovation in the securities market while ensuring investor protection.
This regulatory framework is a significant step towards achieving that goal. Under the new regime, the customer onboarding process will be conducted online and the Online Only brokers will be able to provide trading services to its clients, exclusively through online means. The Online Only Brokers will be a sub-category of Trading Only Brokers.
As a result, the custodial and clearing services will be performed by Professional Clearing members, resulting in significantly less compliance and operational requirements, thereby allowing the brokers to concentrate on their core competencies of brokerage services and distribution.
This will enable new entrepreneurs to start brokerage businesses at lower preliminary and operational costs. The new category will also attract new investors in the capital market as it offers greater convenience for managing investments via online means. The framework includes net worth requirements of Rs. 7.5 million and a single member company is also eligible to apply.
The SECP has also updated the license issuance and renewal fees to Rs. 50,000 and Rs. 25,000 respectively for Online Only Brokers. Moreover, existing brokers may also switch to this new category to lower their overhead costs and remain focused on the core business of trading.
The launch of Online Only Brokers is expected to revolutionize the way investors buy and sell securities by providing a new level of convenience and accessibility as investors will no more be required to call or visit a physical office to place trades, which is often inconvenient and time-consuming.
The SECP encourages entrepreneurs and individuals to undertake the brokerage business under this regime.
Source: Pro Pakistani