ISLAMABAD: Stockbrokers have expressed concern over an amendment suggested by the Securities and Exchange Commission of Pakistan (SECP) to the Futures Exchanges (Licensing and Operations) Regulations 2017, saying overregulation would be harmful for the market.
The response came after the SECP invited public comments on the draft amendment floated at its website. It added a sub-clause to Clause 22 pertaining to handling of money and assets of futures brokers and their customers.
The SECP has suggested the futures exchange deposit money belonging to futures brokers and their customers not only in one or more designated bank accounts but the money can only be invested in treasury bills or Sukuks with original maturities of one year or less, issued by the government.
The Pakistan Stock Brokers Association (PSBA), while expressing concern over the new draft amendment, was of the opinion that overregulation and making the existing regime stringent would only suppress the already underperforming markets.
Published in Dawn, June 28th, 2023
