Customer Compensation Fund (Establishment and Operation) Rules, 2017
Customer Compensation Fund (Establishment and Operation)
, 2017 were promulgated by the Federal Government in exercise of the powers conferred under sub-section (3) of section 175 of the Securities Act, 2015 read with clause (c) of sub-section(2) of section 175 thereof and clause (b) of section 43 of the Securities and Exchange Commission of Pakistan Act, 1997. The word “Act” means the Securities Act, 2005 (III of 2015). The word “Fund” means customer compensation fund established under the rules. The purpose of the fund is to compensate, either fully or partially, customers of a defaulter. The Securities exchanges, for this purpose, shall establish a centralized fund in the form of a trust which shall be administered by the trustees. The size of the fund shall be determined by the securities exchanges based on the methodology approved by the Securities and Exchange Commission of Pakistan. The rules provide that fund may also be utilized to meet any directly attributable expenses incurred for administration of fund. Provided, any existing securities exchange may continue to charge any existing fee for the management of the fund till June 30, 2017.
