KARACHI: The Securities and Exchange Commission of Pakistan (SECP) has proposed introducing referral incentive programmes to increase investor participation in Pakistan’s capital market.
The proposal has been outlined in a concept paper that suggests amendments to the Securities Brokers (Licensing and Operations) Regulations, 2016. Under the proposed framework, existing investors will be able to refer new clients to securities brokers through structured referral programmes.
According to the regulator, incentives under these programmes will be non-cash. These may include commission discounts, trading credits, or similar benefits. The rewards will be capped and offered for a limited period to both the referrer and the new investor.
Brokers will also be required to clearly outline the terms, responsibilities, and benefits of the referral schemes. They will remain responsible for addressing any disputes related to the programme.
The SECP noted that similar referral programmes operate in markets such as the United States, the United Kingdom, Switzerland, Hong Kong, Malaysia and Singapore.The regulator has invited public feedback on the concept paper within 15 days of its publication.
