The Securities and Exchange Commission of Pakistan (SECP) on Wednesday asked all the Single Member Companies (SMC) (holders of TRE Licenses) to convert their status into limited companies within the next 60 days.
The decision against the SMCs has been taken by the SECP and PSX through a notification issued on its website.
Nadeem Naqvi Managing Director PSX confirmed on the phone that there are only 17 SMCs working as TRE certificate holders at Pakistan’s stock market. Meanwhile, SECP’s spokesman said that there are 16 SMCs working in Pakistani stocks.
A source in the stock market said, “All the fraud that has so far been committed in the stock market, the SMCs from Lahore and Islamabad were highly involved, therefore the SECP has decided to convert the remaining SMCs into limited companies.”
The PSX notice said, “it is hereby informed to all TRE certificate holders that the Securities and Exchange Commission of Pakistan (SECP) has made amendments to the Securities Brokers (Licensing and Operations) Regulations, 2016.”
“As per the amendments, a Single Member Company (SMC) cannot obtain a TRE Certificate of Pakistan Stock Exchange Limited (PSX) and the existing SMC already licensed as a securities broker is required to convert its status to a public company or a private company, other than the SMC, within a period of sixty days from the date of commencement of the notification i.e. March 27, 2017.”
