Securities (Leveraged Markets and Pledging) Rules, 2011
The Securities (Leveraged Markets and Pledging) Rules, 2011 were enacted by the Securities and Exchange Commission of Pakistan with the approval of the Federal Government in exercise of the powers conferred by section 33 of the Securities and Exchange Ordinance, 1969 (XVII of 1969) read with section 16 thereof and clause (b) of section 43 of the Securities and Exchange Commission of Pakistan Act, 1997 (XLII of 1997).
Under the rules the term “leveraged market” means the market for offering any of the leveraged market contracts. The term “leveraged market contracts” means contracts relating to each of margin financing, margin trading and securities lending and borrowing. The commission (SECP) shall determine the number and places for the establishment of authorized intermediaries. The commission may by an order in writing impose any restrictions on an authorized intermediary or suspend, or cancel its registration in case of non-compliance of conditions specified by the commission. A person who contravenes or fails to comply with any provision of these rules, regulations or any directives or circulars issued under the ordinance by the commission, shall, in addition to any action authorized under these rules, be liable to any and all actions authorized by the ordinance for such contravention or failure. The rules repeal the Margin Trading Rules, 2004.
