Futures Market Act, 2016
The draft of the Futures Market Act 2016 was forwarded to the Senate St anding Committee on Finance in 2015 for deliberation. It was passed by Senate on 3rd March, 2016 and by the National Assembly on the 16th March, 2016. This law provides the regulations regarding the Futures Market and matters connected herewith and incidental thereto. It shall extend to the whole of the Pakistan. It shall come into force on such dates as the Federal Government may appoint by the notification in the official Gazette. Different dates may be appointed for coming into force of different provisions thereof. After this law was passed all brokers intending to trade in the Futures Market are required to get new license. The major changes in the law are strict monitoring mechanism, and higher penalties for violation of future trade. Under this law if anyone is found guilty of trade violation, he shall be liable to fine up to Rs. 200m or imprisonment of up to three years. Whereas if any incorporated company is found guilty it shall be fined up to Rs. 300m. This law is strict over the procedure of Appeals against the decisions of the SECP.
