As a part of its varied reform process the SECP is encouraging the electronic trading of agricultural commodities through the platform of Pakistan Mercantile Exchange. Hence, the SECP has formulated draft Collateral Management and Warehousing (Establishment & Operations) Regulations, 2016, under the Companies Ordinance, 2016. The key objective of electronic trading and warehouse receipt financing of agricultural commodities is to enable the growers to get fair price of their produce, avail financing facilities and promote efficient payment system.
The salient features of the draft regulations include licensing conditions and financial resource requirements for collateral management company, duties of a collateral management company and the warehouse operator, and powers of the SECP to conduct inspection of collateral management company, its accredited warehouses and any matter connected with the warehousing business, as well as issue directions to a collateral management company or its accredited warehouse in public interest. The draft regulations have been published in the official gazette and placed on the SECP's website (www.secp.gov.pk) for public consultation purposes. The stakeholders may forward their comments by December 23, 2016.-PR