Page 83 - CMA Journal (Nov-Dec 2024)

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SECP Approves Amendments to year’s monthly average. This milestone reflects SECP’s
Modaraba Ordinance, 1980 commitment to fostering a business-friendly environment.
In January 2025, the highest registrations were in IT and
The SECP Policy Board has approved amendments to the e-commerce (652), trading (463), services (411), and real
Modaraba Ordinance, 1980 to modernize the sector, estate (311), with other key sectors also showing growth.
strengthen investor rights, and improve regulation. Key Private companies made up 58% of new incorporations,
changes include allowing unlisted Modarabas for better followed by single-member companies at 38%.
financial mobilization, aligning governance with the SBP Awards First Digital Retail Bank
Companies Act, and enabling investor-backed
management changes. Regulatory oversight will be License to Easypaisa Bank
streamlined by empowering SECP, converting certain
offences into civil matters, and transferring Modaraba The State Bank of Pakistan (SBP) has granted the first
Tribunal functions to courts. These reforms support the Digital Retail Bank (DRB) license to Easypaisa Bank
government's goal of eliminating Riba and improving Limited (formerly Telenor Microfinance Bank), allowing it
transparency in Islamic finance. to commence commercial operations. This milestone is
expected to enhance financial inclusion, promote
SECP Approves Amendments to innovation, and provide accessible digital financial
Insurance Regulatory Framework services. Easypaisa Bank was among five applicants that
received SBP’s No Objection Certificates in January 2023
The SECP Policy Board has approved amendments to the and In-Principle Approval in September 2023. After
insurance regulatory framework, including the Insurance meeting all requirements, it is now the first to launch
Rules, 2017, Insurance Accounting Regulations, 2017, and operations, marking a major step toward Pakistan’s digital
General Takaful Accounting Regulations, 2019. Key banking future.
changes include higher capital requirements, with
non-life insurers needing Rs. 2,000 million and life Pakistan pauses easing cycle after six
insurers Rs. 3,000 million by 2030, strengthening risk consecutive rate cuts
absorption and policyholder protection. Insurers can now
issue subordinated debt instruments, improving financial State Bank of Pakistan (SBP), has kept its key interest rate
flexibility and solvency management. Further unchanged at 12%, halting a streak of six consecutive rate
amendments standardize tax recording, ease restrictions cuts. The decision was a consequence of core inflation,
on government securities holdings, and enhance Takaful which remained elevated despite having fallen recently,
reporting transparency by allowing detailed financial and which the bank believed could still drive up inflation
disclosures. These reforms align with SECP’s Risk-Based more broadly. Core inflation remained at 7.8% in
Solvency Regime, ensuring long-term sector stability. February, unchanged from January and down from the
8.1% recorded in December.
SECP Grants License to First
Digital-Only Securities Broker SBP Issues Raast Participation Criteria
The State Bank of Pakistan (SBP) has issued Raast
The SECP has licensed Tamkeen Securities (Pvt) Ltd as
Participation Criteria, setting minimum requirements for
Pakistan’s first fully digital, online-only securities broker,
eliminating the need for physical visits and paperwork. entities seeking to join Raast and offer digital payment
services. Launched in 2021, Raast is an instant payment
This step aligns with SECP’s vision to accelerate digital
transformation, enhance financial inclusion, and expand system enabling secure, real-time fund transfers across
Pakistan. It supports bulk payments, P2P and P2M
retail participation in the stock market. Pakistan now joins
global markets with fully digital trading platforms, transactions, and payment initiation services. Since its
launch, forty-four (44) entities including SBP Regulated
boosting liquidity and investor confidence.
and Government entities have been on-boarded on Raast
SECP Achieves Record Company as the participants. The new criteria aim to expand
Incorporations in a Month participation, promote digital payments, and foster
innovation and competition in the payments market.
The SECP has set a new record by incorporating 3,442
companies in a single month, a 39% increase from last
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