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Regulations for exchange traded funds amended

Regulations for exchange traded funds amended

ISLAMABAD: The Securities and Exchange Policy Board (SEPB) on Wednesday approved amendments to the Exchange Traded Funds Regulations, which have been revamped to add flexibility for fund managers to appoint separate intermediaries for performing the functions of market maker and authorised participant.

This would enable fund managers for on-boarding market makers easily which are now subject to rationalised regulations that aim to reduce cumbersome requirements and decrease the cost of doing business for market makers, said a press release of the Securities and Exchange Commission of Pakistan (SECP).

In addition to regulatory changes, system level modifications have also been made to enable market makers for performing their functions seamlessly with minimum inventory. The approved regulatory amendments aim to provide maximum facilitation to fund managers and market makers through streamlined regulatory requirements based on international benchmarks.

The board also approved amendments to Futures Brokers (Licencing and Operations) Regulations 2018, which provide relaxation in education requirement of CEO, elimination of the requirement of NCB, deletion of the requirement of wealth statement, and reduction in frequency of reports by compliance officer.

Amendments were approved in the Securities Brokers (Licencing and Operations) Regulations 2016 extending the timeline for complying with financial resource requirements till December, and deletion of requirement to submit certificate of commencement of business.

The board approved amendments to CDC Regulations - Reforms in CDC Regulatory Framework for ease of doing business by direct credit of securities in the CDS issued by way of right issue of public unlisted and private companies; relaxation in appointment of independent Transfer Agent by private and single member companies.

It was also approved that PSX will act as the sole frontline regulator and may draw upon the assistance of NCCPL and CDC to outsource the compliance function of PSX, to the extent of supervision or conducting any investigation, inspection or enquiry and monitoring compliance of securities brokers.

Published in Dawn, September 19th, 2019

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