Underwriters Rules, 2015
Underwriters Rules, 2015 were made 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 read with section 32 C thereof and clause (b) of section 43 of the Securities and Exchange Commission of Pakistan Act, 1997. The rules provide that, no person shall act or perform the functions of an underwriter unless such person is registered as an underwriter with the SECP in accordance with these Rules. Provided that all underwriting agreements made before the commencement of these Rules shall be deemed to have been duly made under these Rules. The issuance of these Rules is a major step towards development of a vibrant capital market in Pakistan. The role of the Underwriters is vital in stock market trading as they ensure raising of the requisite funds to the issuer for their projects and also conduct due diligence to provide comfort to the prospective investors for making investment decisions. The rules safeguard the interest of investors and shareholders and ultimately raise their confidence towards capital market. The key areas covered in the Rules are the eligibility requirements; licensing; duties, responsibilities and functions of the Underwriters, and enforcement actions like restriction, suspension or cancellation of license in case of violation.
