The Securities and Exchange Commission of Pakistan (SECP) moving ahead with the implementation of recently promulgated Futures Market Act, 2016, has formulated draft Futures Exchanges (Licensing & Operations) Regulations, 2017.
The salient features of the draft regulations include application of fit and proper criteria to the majority shareholders, directors and senior management officers, the application of code of conduct for board of directors and senior management officers and financial resource requirements of minimum paid-up capital (net of losses) of rupees 500 million, with the condition that an existing futures exchange shall have three years to meet this threshold.
In addition, the regulations require composition of board of directors and related matters, the appointment of chief executive officer with approval of the SECP and the constitution of risk committee and appointment of chief risk officer. The draft regulations have been published in the official gazette and placed on the website of SECP (www.secp.gov.pk) for public consultation purposes. The stakeholders may submit their comments by April 21, 2017.-PR