Karachi: The Securities and Exchange Commission of Pakistan (SECP) is planning to increase the minimum capital requirements for Brokers in order to improve the standard of financial markets in the country and also to promote small brokers for mergers and acquisition to turn into financially strong brokerage houses and participate in the stock exchange.
According to Alfalah Securities, SECP Chairman Mr. Muhammad Ali has shown interest in transforming brokerage houses larger and stronger and to encourage them in extensive marketing and research for investor’s awareness.
At present, the minimum capital requirement for brokers is fixed at PkR 2.5 mn as per the law created in 1970 which is negligible and could be revised by the SECP. The enhancement of minimum capital requirements if implemented may decrease the number of brokers and would force many small brokers either to closure of operations or to merge/get acquired with other brokers.
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