All Brokers and their Agents are required to be registered with SECP for offering brokerage services to the general public. Licensing of brokers and agents is regulated by the Brokers and Agents Registration Rules, 2001.
BR Rules prescribe the eligibility conditions for brokers, registration procedure, effect for refusal of registration, renewal, general obligations and responsibilities of brokers and agents. Further, these rules also prescribe the code of conduct for the brokers. The eligibility criterion for agents is prescribed in the Members’ Agents and Traders (Eligibility Standards) Rules, 2001.
A Trading Right Entitlement Certificate (“TREC”) holder desirous of acting as broker shall make an application to the SECP in Form as set out in the First Schedule of the BR Rules for grant of a certificate of registration through the Pakistan Stock Exchange Limited (“PSX”). The PSX shall forward the application to the SECP within 14 days from the date of its receipt.
Grant of Certificate of Registration
The SECP, if satisfied that the applicant is eligible for registration as a broker, and that it is in the interest of the stock market to do so, may grant certificate of registration to the applicant. The certificate of registration of a broker shall be valid for one year from the date of issue.
Renewal of Registration
The certificate of registration is renewable on payment of fee as prescribed in the Second Schedule of the Rules. Requirements of initial registration are applicable to renewal of the registration.