ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP), moving ahead with implementation of the recently promulgated Futures Market Act, 2016, has formulated draft Futures Exchanges (Licensing & Operations) Regulations, 2017.
The salient features of the draft regulations are application of fit and proper criteria to the majority shareholders and directors and senior management officers, application of a code of conduct to the board of directors and senior management officers and financial resource requirement of minimum paid-up capital (net of losses) of Rs500 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, appointment of chief executive officer with the approval of the SECP, 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.
