![SECP approves new regulations for licensing, operation of clearing
houses](https://photo-cdn.urdupoint.com/media/2016/08/_2/740x404/pic_1470768482.jpg)
SECP Approves New Regulations For Licensing, Operation Of Clearing
Houses
Fakhir Rizvi Published August 09, 2016 | 11:48 PM
![SECP approves new regulations for licensing, operation of clearing
houses](https://photo-cdn.urdupoint.com/media/2016/08/_2/740x404/pic_1470768482.jpg)
ISLAMABAD, (UrduPoint / Pakistan Point News - 9th August, 2016) : Securities and Exchange Commission of Pakistan (SECP) has approved the Clearing Houses (Licensing and Operations) Regulations, 2016. The regulations which have been finalized after detailed stakeholder consultation have been placed on the SECP website, said a statement received here on Tuesday. In compliance with the requirements of the Act, the regulations provide for matters relating to licensing, minimum financial resources, duties and obligations. It also prove audit and accounts, appointment and conduct of directors and management, fit and proper criteria for directors and management and manner of outsourcing of important functions, for the clearing house. For the protection of investors' interest and to boost investor confidence in the market, the regulations also provide for establishment of a fund by the clearing house to guarantee settlements of trades executed at a securities exchange.
Under the regulations, initial and ongoing financial resource requirements for a clearing house, based on current and future risk evaluation of the clearing house's operations, have been prescribed given the critical functions being performed by a clearing house.
For good governance, shareholding criteria and shareholding limits have been specified for a clearing house besides requiring it to appoint one-third independent directors on its board.
Considering that the clearing house has recently acquired the status of a central counter party as per best international practice, various new requirements have been made applicable to the clearing house through the regulations to strengthen its new status and to meet its enhanced requirements. This includes requirement for the clearing house to form a risk committee comprising of independent directors, key management personnel and industry experts in order to assist the clearing house in developing risk management policies and procedures. Clearing houses worldwide are critical infrastructure institutions for capital markets and it is expected that with the implementation of this comprehensive regulatory framework. Clearing house in Pakistan will be better geared towards provision of efficient clearing and settlement services, while ensuring maximum reduction of risks, thus promoting investor confidence.
Recent Stories
![Cricket: England v West Indies 3rd Test scoreboard](https://photo-cdn.urdupoint.com/media/2024/07/_1/235x155/pic_1722019914.jpg)
Cricket: England v West Indies 3rd Test scoreboard
![Finance minister briefs Chinese officials on refor ..](https://photo-cdn.urdupoint.com/media/2024/07/_1/235x155/pic_1722019922.jpg)
Finance minister briefs Chinese officials on reform agenda, engagement with IMF
![Finland says Russian vessel violated its territori ..](https://photo-cdn.urdupoint.com/media/2024/07/_1/235x155/pic_1722019912.jpg)
Finland says Russian vessel violated its territorial waters
![Olympic opening ceremony under way on River Seine](https://photo-cdn.urdupoint.com/media/2024/07/_1/235x155/pic_1722019266.jpg)
Olympic opening ceremony under way on River Seine
![West Indies' treble strike rocks England in third ..](https://photo-cdn.urdupoint.com/media/2024/07/_1/235x155/pic_1722019264.jpg)
West Indies' treble strike rocks England in third Test
![Ukraine court orders detention of suspect in murde ..](https://photo-cdn.urdupoint.com/media/2024/07/_1/235x155/pic_1722019262.jpg)
Ukraine court orders detention of suspect in murder of nationalist ex-MP
![Long queues, ticketing problems ahead of Paris ope ..](https://photo-cdn.urdupoint.com/media/2024/07/_1/235x155/pic_1722019015.jpg)
Long queues, ticketing problems ahead of Paris opening ceremony
![Rana Sanaullah Khan joins Paris 2024 Olympics inau ..](https://photo-cdn.urdupoint.com/media/2024/07/_1/235x155/pic_1722019638.jpg)
Rana Sanaullah Khan joins Paris 2024 Olympics inauguration reception
![Glowing tributes mark 69th birthday of President Z ..](https://photo-cdn.urdupoint.com/media/2024/07/_1/235x155/pic_1722019637.jpg)
Glowing tributes mark 69th birthday of President Zardari at Governor's House
![Players unaware of spying scandal as Canada Olympi ..](https://photo-cdn.urdupoint.com/media/2024/07/_1/235x155/pic_1722019635.jpg)
Players unaware of spying scandal as Canada Olympic coach sent home: official
![Naqvi hails Pak women cricketers for going down fi ..](https://photo-cdn.urdupoint.com/media/2024/07/_1/235x155/pic_1722019013.jpg)
Naqvi hails Pak women cricketers for going down fighting against SL
!['Sabotage' on French rail network before Olympics: ..](https://photo-cdn.urdupoint.com/media/2024/07/_1/235x155/pic_1722019634.jpg)
'Sabotage' on French rail network before Olympics: What we know
More Stories From Pakistan
-
NDMA Advisory: More Monsoon Rains-wind, Thundershowers from July 28-31
6 hours ago -
Armed Forces, tri services chiefs pay homage to Captain Sarwar Shaheed
6 hours ago -
Agriculture dept inks agreement with Bakhabar Kissan
7 hours ago -
Rana Sanaullah Khan joins Paris 2024 Olympics inauguration reception
7 hours ago -
Glowing tributes mark 69th birthday of President Zardari at Governor's House
7 hours ago -
Balochistan CM announce depoliticizing of police, Levies force
7 hours ago
-
PTI creating unrest, halting economic progress in country: MNA
7 hours ago -
ISSI holds webinar on “Elections in Iran : Regional and International Insights”
7 hours ago -
ECP defers written test for seats of election officers
7 hours ago -
PN assists in firefighting, evacuation efforts for stranded civilians of Kashif Centre fire incident
7 hours ago -
Women's rights protection is govt's top priority. Hina Parvez Butt
7 hours ago -
"We stand in solidarity with Azma Bokhari”: Secretary Women’s Parliamentary Caucus
7 hours ago