KARACHI: The Securities and Exchange Commission of Pakistan (SECP) has said that it is encouraging electronic trading in agricultural commodities through the platform of Pakistan Mercantile Exchange and has framed draft Collateral Management and Warehousing (Establishment & Operations) Regulations 2016 under the Companies Ordinance 2016.
“The key objective of electronic trading and warehouse receipt financing of agricultural commodities is to enable growers to get fair prices for their produce, avail themselves of financing facilities and promote an efficient payment system,” it said in a statement on Friday.
Salient features of the draft regulations include licensing conditions and financial resource requirements for a collateral management company, duties of the collateral management company and warehouse operator, and powers of the SECP to conduct inspection of the collateral management company, its accredited warehouses and any matter connected with the warehousing business.
The SECP will also issue directions to the collateral management company or its accredited warehouse in public interest.
It said the regulations had been published in the official gazette and placed on the regulator’s website for public consultation purposes. Stakeholders could forward their comments by December 23, 2016.
courtesy : Express Tribune