The Securities and Exchange Commission of Pakistan (SECP) has introduced a new regulatory framework for Digital Asset Management Services (DAMS), tightening requirements for Digital Asset Management Companies (Digital AMCs) operating in the country.
The reforms, issued through S.R.O.1438(I)/2025 as an amendment to the Non-Banking Finance Companies and Notified Entities Regulations, 2008, aim to standardize and strengthen the oversight of digital investment platforms.
Key Provisions of the New Rules
Under the updated regulations, a “Digital Platform” is defined as any tool, software, mobile app, or web-based portal that serves as the primary interface between Digital AMCs, investors/unitholders, and related stakeholders. This includes internet-based distribution platforms and digital aggregation services.
The rules apply to:
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All Digital AMCs providing DAMS.
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AMCs intending to use digital platforms for investor engagement and fund distribution.
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Platforms managed, owned, or administered by Digital AMCs.
Licensing and Eligibility Criteria
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A Fund Management NBFC must first secure permission under Rule 4 of the NBFC Rules, comply with all requirements under Rule 5, and state its intent to provide DAMS in Form-II.
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The SECP may grant an AMC license with the condition that the company operates exclusively through digital platforms.
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Applicants must submit a five-year business plan along with comprehensive financial projections, covering operational strategy, financial sustainability, and risk management frameworks.
Compliance Requirements
Digital AMCs will be required to meet all existing obligations applicable to conventional AMCs under the NBFC Regulations, Circulars, and Directives, unless specifically relaxed under the new digital-focused rules.
The SECP said the move is designed to encourage innovation in financial services while ensuring investor protection and regulatory compliance, as the demand for digital platforms continues to grow in Pakistan’s financial sector.