Karachi: In a significant regulatory update, the Securities and Exchange Commission of Pakistan (SECP) has announced an amendment to the Companies Act of 2017, specifically targeting securities brokers. This change, effective immediately, introduces stringent requirements for brokers handling customer assets. According to information available from the Pakistan Stock Exchange (PSX), this amendment aims to enhance the oversight and security of investor assets.

The alteration, detailed in S.R.O 921 (I)/2024, affects the Third Schedule of the Companies Act. A new sub-clause (iia) has been added under Serial No. 1, clause (b). It mandates that securities brokers, licensed as Trading and Self Clearing or Trading and Clearing categories and possessing custody of customers' assets, must also qualify as Professional Clearing Members.

This update is part of the SECP’s ongoing efforts to strengthen the regulatory framework surrounding the financial activities of securities brokers, ensuring a higher level of trust and security for investors engaging in the Pakistan Stock Exchange.