The Securities and Exchange Commission of Pakistan (SECP) has issued requirements for undertaking Digital Asset Management Services (DAMS) by Digital Asset Management Companies (Digital AMCs).

The SECP has issued S.R.O. 1438(I)/2025 to amend the Non-Banking Finance Companies and Notified Entities Regulations, 2008.

According to the regulations, a “Digital Platform” means a tool, application, software, or solution that uses digital/IT as the primary interface between the Digital AMC, investor/unitholder, and other parties involved in the process of offering DAMS. This includes mobile phone applications, web-based portals, internet-based channels, digital distribution/aggregation platforms, and other enabling or supplementary support services.

The new procedure shall apply to Digital AMCs for the provision of DAMS and digital services offered by Asset Management Companies using or intending to utilize Digital Platforms for providing their services to customers/investors. The requirements shall apply to all Digital Platforms administered, managed, and/or owned by Digital AMCs.

The eligibility requirements state that a Fund Management NBFC, subsequent to the grant of permission in terms of Rule 4 of the Rules, shall, in addition to compliance with all requirements/conditions for the grant of a license as provided in Rule 5 of the NBFC Rules, clearly mention the intention to obtain a license for undertaking DAMS in Form-II of the NBFC Rules.

The SECP may, if satisfied, grant an AMS license conditional on the restriction that such an Asset Management Company (AMC) shall be eligible to provide DAMS only through digital platforms.

A Fund Management NBFC desirous of engaging in the business of DAMS shall, along with its application for the grant of a license, submit a viable business plan and comprehensive financial projections supported by underlying assumptions for a minimum of five years from the commencement of business. This business plan shall encompass, but not be restricted to, the following aspects:

The Digital AMC shall adhere to all applicable requirements for a conventional AMC under the NBFC Regulations, Circulars, and Directives, unless expressly modified or relaxed by the above-stipulated requirements, the SECP added.