Karachi: The Pakistan Stock Exchange Limited (PSX) has announced the invitation for applications to issue 15 new Trading Right Entitlement (TRE) Certificates. The issuance is conducted under the provisions of subsections (4) and (5) of section 16 of the Stock Exchanges (Corporatization, Demutualization, and Integration) Act of 2012, as amended by the Act of 2015. This opportunity is set to enhance participation in the capital market.
According to the eligibility criteria outlined by PSX, applicants must be either a public or private company, excluding those seeking a TRE Certificate for the Online Only Securities Broker category, which may also be a Single Member Company as defined by the Companies Act, 2017. Compliance with relevant Rules and Regulations of the Securities and Exchange Commission of Pakistan (SECP) and PSX, including the Securities Brokers (Licensing and Operations) Regulations, 2016 (SBLOR, 2016), is mandatory. Any entity meeting the "Fit and Proper Criteria" under SBLOR, 2016 is eligible for a TRE Certificate, subject to prior permission from the SECP, except for Trading Only and Online Only categories.
The company awarded a TRE Certificate must obtain a Securities Broker license from SECP within six months from the date of issuance and commence operations within three months from the date of licensing, as mandated by Section 16(7) of the Act. Financial resource requirements must also be met according to the SBLOR, 2016 for the respective category of Securities Brokers.
The designated market category for these TRE Certificates includes a fee structure specifying Rs. 2.50 million for the issuance of a new TRE Certificate, excluding the Online Only category, where the fee is Rs. 1.25 million. Additionally, a non-refundable application processing fee of Rs. 100,000 must be submitted via Pay Order in favor of PSX.
According to information available from the Pakistan Stock Exchange (PSX), this move is anticipated to stimulate growth and investment in the financial sector, aligning with the ongoing corporatization and integration efforts. The deadline for application submissions has not been specified, but interested parties are encouraged to capitalize on this offering promptly.