Karachi: The Securities and Exchange Commission of Pakistan (SECP) has issued draft amendments to the Securities Brokers (Licensing and Operations) Regulations, 2016, as per S.R.O. 1863(I)/2026, dated October 13, 2026, to solicit public comments and feedback. This move aims to ease reporting obligations on shareholders and directors of securities brokers, following recommendations from the Pakistan Stock Exchange Limited (PSX).

The existing regulation, Regulation 16(7), allows non-executive directors and substantial shareholders of a broker to trade through another securities broker, provided they have prior written approval and meet disclosure obligations. The proposed amendments aim to simplify these processes by removing the requirement to report to the PSX and exempting certain substantial shareholders.

According to information available from the Pakistan Stock Exchange (PSX), the draft amendments retain the core requirements for shareholders and directors to obtain a one-time prior written approval and notify their own company secretary about transactions through another broker. However, the time frame for delivering transaction details to the company secretary has been extended to seven working days. Furthermore, the requirement for the company secretary to forward this information to the securities exchange has been deleted.

In a significant new provision, SECP has proposed that Regulation 16(7) will not apply to particular substantial shareholders, specifically financial institutions and parent securities brokers with wholly owned subsidiaries offering Shariah-compliant brokerage services. The explanation clarifies that financial institutions encompass a range of entities including banking companies, Development Financial Institutions, Non-Banking Financial Companies, and Insurance Companies.

The SECP's draft amendments reflect a shift towards reducing regulatory burdens while maintaining necessary oversight, with public feedback now being sought on these proposals.