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Name: Pardeep Agarval

Student id: 9948

Assignment: 02

Lecturer: Syed Maqbool-ur- rehman

Course: Treasury and fund management

Section: A

Date: February 11,2013

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FX or Mone PKR. 7,500,000/ FX & Mone PKR 10,000,000/

FX, MM & deri: PKR 20,000,000/

Following are the requirements which are approved by the SBP to be a money market

broker:

Organization structure

The Applicant, in whose credentials the recommendation is granted, must form a Corporate

Entity, registered with SECP, either in the shape of Private Limited Co. or Public Limited

Co. Accreditation would only be granted by FMAP, once the entity is duly registered with

SECP. All Brokerage Entities should have a National Tax Number (NTN).

Adequate financial resources:

The Financial viability of the Brokerage Entity would be determined in terms of Paid-up

Capital (net of Losses, if any). The criteria would be determined based on the

proposed activities carried out by the entity in addition to its already existing business &

Capital Adequacy requirements by respective authorities;

At the time of application, the applicant must produce the evidence of minimum 25%

of the Paid-up Capital requirement to show the seriousness of the applicant.

Infrastructure Requirements:1. The entity should have a clear/distinctly marked Office Premises.2. Should have at least 6 designated Hotlines/ Telephone lines, which should all be

connected to Voice Recording System.

3. Should have facsimile & and an email account.4. Should have proper designated/ trained dealing and settlement staff

Qualification:

1. The Head of FX and/or Money Market Desks should at least successfullycomplete the ACI Dealing Certificate, within the six month of taking theirassignment or accreditation of the firm by FMAP in respective product(s).

2. The Head of Derivatives/Specialized Products should at least successfullycomplete the ACI Diploma, within the six month of taking their assignment or

accreditation of the firm by FMAP in the respective product(s).

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Other requirements:

1. The following information or documents should be submitted together with anapplication:

2. A description of the applicants organization and staff resources with relevantdocuments on the companys constitution. If already in the Brokerage Industry,

then list of Clientele, coverage and tenor of the company.

3. Details of Ultimate Beneficial Ownership (UBO), including the names of alldirectors, controllers and the amount of their shareholdings

4. Detailed profile on the background, experience, and qualifications of Directorsand Managers/ Head of Desks; supported by relevant documents.

5. Details of Accounting Systems and Systems of Internal Control;6. A statement by the applicant as to whether its operations are already supervised

and by whom.

7. Certificate from the registrar that the company is registered as Public/PrivateLimited Company, before commencing of business.

8. Disclosure of all proprietary/other activities to be carried out by the proposedentity.

9. Name of Companys External Auditors.