The stock market will see the emergence of a new class of “online-only” brokers who will begin dealing shares exclusively online.
According to the SECP‘s most recent report on stock market brokers, which was released on Friday, a new category of “online-only” brokers has been proposed to be introduced, which shall enable trading in the stock market using only online means.
This is in keeping with the global trend of increased digitalization in the financial markets.
The online-only broker aims to offer greater ease and draw new clients to the capital market with features including fewer financial resource restrictions.
Through a standardized, unified customer information database, to improve internet facilitation for financial services industry investors, CDC created a thorough concept paper for the introduction and implementation of an online account opening portal on the recommendation of SECP.
This portal will serve as a one-stop shop for investors in all asset classes of SECP-regulated intermediaries.
A working group has been established with the task of identifying regulatory framework changes for the Gateway Portal and standardizing account opening forms for investor onboarding across all asset classes, including Securities Brokers, Mutual Funds, and the Insurance industry.
The Gateway Portal will be launched after the regulatory and operational modalities are complete.
Compliance improvements for Trading-Only brokers after the establishment of the Professional Clearing Member (PCM) Regime, SECP has been working with SROs to modify the compliance standards for Trading-Only (TO) Brokers.
The changes are meant to make it crystal apparent who is responsible for ensuring that TO brokers comply with legal requirements.
To bring more transparency to general meetings, a minimum of one scrutinizer must be appointed by some businesses, according to the newly proposed concept of the scrutinizer.
To increase openness, the scrutinizer would independently monitor the voting process.
It is now required that the Board of the listed company offer the option of electronic voting for the election of directors and for any other special business that is conducted at a public meeting of the company in light of the improvements in information technology.
This will enable stockholders to have freedom and convenience. SECP releases the proposal’s draught for public discussion.
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