Clearing Houses (Registration and Regulation) Rules, 2005
The Clearing Houses (Registration and Regulation) Rules, 2005 were made by Securities and Exchange Commission of Pakistan with the approval the Federal Government in exercise of the powers conferred under section 39 of the Securities and Exchange Commission of Pakistan Act, 1997 (XLII of 1997) read with clause (f) of section 2 and clause (b) of section 43 thereof. The rules shall apply to a clearing house as are required by the Securities and Exchange Commission of Pakistan to be registered under the rules from time to time. Rule 3 provides that a person desirous of commencing business as a clearing house shall be eligible for registration under these rules subject to fulfillment of the conditions of this rule. He has to make an application in the prescribed form, accompanied with the fees as specified by the commission. The commission has discretion either to grant or refuse such registration. In case the commission refuses to grant registration to an applicant, the decision shall be communicated to the applicant stating therein the reasons for such refusal and the fee collected from the applicant shall be refunded. The clearing house or any officer or member of a clearing house shall be duty bound to maintain the confidentiality. If any person fails or refuses to comply with, or contravenes any of the provisions of these rules or any direction or order passed by the commission under these rules or knowingly or willfully authorizes or permit such failure, refusal or contravention, he shall in addition to any other liability under the Act, the Securities and Exchange Ordinance, 1969 (XVII of 1969), and the Companies Ordinance of 1984, be punished with a fine as specified by the Commission with the approval of the Board.
