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Pakistan securities regulator eases licensing rules for brokerages

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Pakistan securities regulator eases licensing rules for brokerages

Pakistan's securities regulator amended licensing and operations regulations for brokerages to reduce regulatory burden and to promote the ease of doing business for the industry.

The Securities and Exchange Commission of Pakistan said Jan. 29 that it will now require a securities broker to obtain a single license to undertake brokerage activity instead of a multiple-licensing regime.

The regulator also introduced a single expiry date for licenses for the entire brokerage industry. The validity date for the existing brokerage licenses has been extended to Dec. 31. The license renewal process has also been simplified and the annual renewal would be processed upon the submission of the Pakistan stock exchange's recommendation. The SECP has also eliminated categorizing securities brokers for licensing purposes.

The regulator said it will only grant licenses to corporate entities to undertake regulated activities in the capital markets and not to any individual. All existing agents may be hired as employees by the securities brokers.

Moreover, the amended rules allow banks to distribute units of mutual funds and voluntary pension funds of multiple asset management companies.