Regulatory Services

Licensing

Explore SECP's licensing framework for regulated entities and understand the process, requirements, and compliance standards.

Overview

The Securities and Exchange Commission of Pakistan (SECP) is the apex regulatory body responsible for the regulation and supervision of the corporate sector and capital markets of Pakistan. All entities operating in regulated sectors are required to obtain an appropriate license from SECP prior to commencement of operations.

The licensing framework ensures market integrity, investor protection, and systemic stability across financial services - including non-banking finance companies, insurance entities, brokerage firms, and asset management companies.

Market IntegrityInvestor ProtectionTransparencyRegulatory ComplianceSystemic Stability

Types of Licenses

NBFC

Non-Banking Finance Companies

Entities providing lending, leasing, investment finance, and housing finance services outside the banking sector.

Insurance

Insurance Companies

Life and non-life insurance companies, and window takaful operators regulated under the Insurance Ordinance.

Intermediary

Brokers & Intermediaries

Securities brokers, commodity brokers, futures brokers, and advisors operating on regulated exchanges and markets.

Asset Mgmt

Asset Management Companies

Entities managing collective investment schemes, mutual funds, pension funds, and voluntary pension system funds.

REIT

REIT Management Companies

Entities managing Real Estate Investment Trusts for pooled investment in property assets across Pakistan.

Modaraba

Modaraba Companies

Shariah-compliant investment vehicles mobilising funds through modaraba certificates for Islamic finance activities.

Licensing Process

Initiation

Application Submission

Submit a complete application via SECP's eServices portal along with all prescribed forms, supporting declarations, and the applicable processing fee. Incomplete applications will not be accepted.

In Progress

Documentation Review

SECP officers conduct a detailed review of submitted documents for completeness, authenticity, and conformance with applicable regulations. Deficiencies are communicated within 15 business days.

Verification

Fit & Proper Assessment

Directors, chief executives, and key personnel are assessed against the SECP's fit and proper criteria. Background verifications, financial soundness checks, and interviews may be conducted.

Evaluation

Compliance & Due Diligence

The applicant's business plan, capital adequacy, internal controls, and risk management framework are evaluated against sector-specific regulatory benchmarks.

Final

Approval or Rejection

Upon successful completion of all checks, the license is granted and published on the SECP website. In the event of rejection, a written explanation is provided and applicants may request a review.

Who Needs a License

Financial Services Firms

Companies offering lending, leasing, investment, or housing finance services to the public.

Insurance Providers

All entities seeking to underwrite or intermediate insurance or takaful products in Pakistan.

Capital Market Participants

Brokers, advisors, portfolio managers, and underwriters active in Pakistan's capital markets.

Fund Managers

Companies managing mutual funds, pension schemes, or collective investment vehicles.

Real Estate Managers

REIT management companies and developers operating regulated real estate investment schemes.

Islamic Finance Entities

Modaraba companies and Shariah-compliant investment entities under the Modaraba Companies Ordinance.

Eligibility Criteria

Financial Requirements

Minimum paid-up capital as per category regulations

Adequate solvency margin and liquid assets

Clean credit history of principal shareholders

Audited financials for preceding three years

Legal & Corporate

Incorporated as a company under the Companies Act, 2017

Registered office situated in Pakistan

Memorandum of Association specifies permitted activities

No pending winding-up proceedings

Operational Readiness

Sound business plan for minimum three years

Robust internal compliance framework

IT infrastructure meeting security standards

Adequate office premises and staffing

Fit & Proper Persons

Directors must pass the SECP Fit & Proper Test

No prior conviction in financial crimes

Relevant professional qualifications or experience

Declarations of no conflict of interest

Required Documents

Financial Documents

Audited Financial Statements (3 years)

Capital Adequacy Certificate

Bank Statements (6 months)

Fee Payment Receipt

Projected Financial Plan

Source of Funds Declaration

Corporate Documents

Certificate of Incorporation

Memorandum & Articles of Association

List of Directors with CNICs

Board Resolution for Application

Shareholding Structure Chart

Registered Office Evidence

Business Plan Documents

3-Year Business Plan

Risk Management Policy

Compliance Framework

IT Systems Overview

AML/CFT Policy Document

Personnel Documents

CVs of Directors & CEO

Fit & Proper Declarations

Character Certificates

Professional Qualification Copies

Tax Compliance Certificates

Note: Filled = commonly required across all categories. Unfilled checkboxes indicate documents required for specific license types. SECP may request additional documentation during review.

Fees & Charges

License Category	Application Fee	Annual License Fee	Renewal Fee
NBFC - Investment Finance	PKR 500,000	PKR 200,000	PKR 150,000
NBFC - Leasing Company	PKR 300,000	PKR 150,000	PKR 100,000
Life Insurance Company	PKR 1,000,000	PKR 500,000	PKR 400,000
Non-Life Insurance Company	PKR 750,000	PKR 350,000	PKR 250,000
Securities Broker	PKR 250,000	PKR 100,000	PKR 75,000
Asset Management Company	PKR 500,000	PKR 200,000	PKR 150,000
REIT Management Company	PKR 500,000	PKR 200,000	PKR 150,000

Fees are indicative and subject to revision by SECP. All payments must be made via bank draft or online transfer to SECP's designated account. Fees are non-refundable.

Regulations & Guidelines

Insurance Ordinance, 2000

Primary legislation governing the insurance sector in Pakistan

Ordinance

NBFC (Establishment & Regulation) Rules, 2003

Core rules governing establishment of non-banking finance companies

Rules

NBFC & Notified Entities Regulations, 2008

Operational regulations for licensed NBFCs and notified entities

Regulation

Securities Act, 2015

Regulation of securities market, capital raising, and intermediaries

Act

Fit & Proper Criteria, 2021

Standards for directors, CEOs, and key management personnel

Criteria

Asset Management Regulations, 2022

Framework for AMCs, fund management, and investor protection

Regulation

Processing Time

15d

Initial Scrutiny

Document completeness check

30d

Detailed Review

Full compliance assessment

15d

Fit & Proper

Personnel background checks

30d

Final Decision

Approval or rejection notice

Total indicative processing time is 30 to 90 business days from the date of receipt of a complete application. Timelines may vary depending on application complexity and response time of the applicant to SECP queries.

Ready to Apply?

Submit your licensing application securely through SECP's eServices portal. Our team is available to guide you through each step of the process.