SECP issues draft regulations

ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has formulated draft Collateral Management Companies Regulations, 2019 under the Companies Act, 2017 to promote electronic trading and warehouse receipt financing of agricultural commodities, a statement said on Wednesday.

Any public limited company with an equity of Rs200 million, or higher, will be eligible for seeking SECP permission to register as a collateral management company, it added.

The collateral management companies will provide storage and preservation services for a range of agricultural commodities, and will issue credible warehouse receipts for agricultural commodity financing.

Additionally, these companies will carry out stock audits, as well as accreditations and inspections of warehouses. Such accreditations will be based on an evaluation of relevant documents including, but not limited to, an evidence of ownership / lease documents of warehouse, certificate of compliance of warehouse with the applicable local laws, security and insurance arrangements, and presence of all necessary equipment for loading/unloading, weighing, drying and handling commodities, the statement said.