The brokers were categorised in line with their net worth and governance requirements into three categories: Trading & Clearing broker (T&C), Trading & Self-Clearing (TSC) and Trading Only (TO). The brokers from Islamabad and Lahore maintain that the new regime will eventually help expand the clientele base across the country. He said that the new regime allowed the TO brokers to keep custody of proprietary assets and assets of its sponsors, directors, and their close relatives. “We tried demutualization we should try this regime too – otherwise further amendment can undo few sections,” he said while playing down the fear that the small investors would eventually shift from the TO brokers to the T&C brokers. However, the SECP should mull the option to establish an independent clearing agency open in case the clients of the TO and TSC brokers start shifting to the T&C brokers after the embargo period of two years.

Source: Pakistan Today February 05, 2020 17:26 UTC