karachi: The Pakistan Stock Exchange Limited (PSX) has proposed amendments to its regulations, seeking public comments on two key areas concerning disciplinary powers and auditing practices. The proposals, dated July 1, 2026, are aimed at refining the application of sanctions and optimizing audit processes within the securities market.
The first proposed amendment involves the shifting of disciplinary powers from Chapter 22 to Chapter 20 of the PSX Rulebook. This change pertains to the restriction imposed on securities brokers from opening new branch offices for three years if they are found in violation of client asset segregation rules. Currently, PSX Regulation 22.2 (a) enforces this restriction. The proposed amendment recommends that such disciplinary actions be evaluated on a case-by-case basis, considering factors such as materiality, duration, and frequency of the violation, rather than applying a blanket restriction. This approach aims to balance regulatory priorities with business needs, enhancing investor protection while fostering market growth and financial inclusion.
The second proposed amendment seeks to streamline the audit process by removing non-technical areas from the scope of the Internet Based Trading Services (IBTS) Audit under Chapter 9. According to information available from the Pakistan Stock Exchange (PSX), these non-technical areas overlap with those already covered under the System Audit in Chapter 23. The proposed changes would transfer these non-technical aspects to the System Audit, thereby eliminating duplication and ensuring a comprehensive audit scope. The technical areas of IBTS will continue to be assessed through the Vulnerability Assessment and Penetration Testing (VAPT) audit under Chapter 9.
The PSX has invited securities brokers and other stakeholders to submit their written comments on these proposed amendments by July 9, 2026. This invitation is in accordance with Section 7(3) of the Securities Act, 2015. Comments can be submitted through prescribed modes detailed in the 'Guidelines for Submission of Comments.'
These proposed amendments reflect PSX's ongoing efforts to adapt its regulatory framework to the evolving needs of the market while maintaining robust investor protection mechanisms. The designated market category for this initiative focuses on improving regulatory compliance and audit efficiency within the securities brokerage sector.