The Securities and Exchange Commission of Pakistan (SECP) has sought public comments by November 5 on proposed amendments to securities rules by putting them on its website and has also sent these for publication in the official gazette.
Earlier, the amendments to the Securities (Leveraged Markets and Pledging) Rules 2011, which were submitted for approval of the federal government in August, were received by the SECP after being vetted by the Law and Justice Division.
According to the SECP, the rules, which were promulgated by the federal government in February, prescribe a broad regulatory framework for margin financing, margin trading and securities lending and borrowing.
SECP said the purpose of introducing these leverage products had been to help boost trading activity and meet financing needs of the capital market while providing retail investors with an easy access to financing against shares.
The amendments will be promulgated by the federal government following completion of the consultation process.
Published in The Express Tribune, October 8th, 2011.
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