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The Securities and Exchange Commission of Pakistan (SECP) has introduced new rules for Digital Asset Management Services (DAMS) to regulate Digital Asset Management Companies (Digital AMCs). The move aims to enhance investor protection, promote transparency, and streamline the use of digital platforms in Pakistan’s financial sector.
The changes, issued through S.R.O. 1438 (I)/2025, amend the Non-Banking Finance Companies and Notified Entities Regulations, 2008. Under the updated framework, “Digital Platforms” now include mobile apps, web portals, internet-based channels, digital distribution platforms, and supplementary digital services used by AMCs to connect with investors.
The regulations apply to all Fund Management NBFCs and Digital AMCs seeking to provide DAMS. Companies must submit a license application along with a five-year business plan covering financial projections, operational strategy, and a risk management framework.
Key Requirements for DAMS
| Requirement | Details |
| Licensing | Must comply with NBFC Rules 4 & 5, and state intent in Form-II |
| Business Plan | Include 5-year projections, operational strategy, sustainability, and risk management |
| Service Scope | DAMS are allowed only through approved digital platforms |
| Compliance | Digital AMCs must follow all conventional AMC rules unless exemptions apply |
The SECP may grant an AMS license, provided that services are offered exclusively through digital platforms. These reforms are expected to encourage digital innovation in Pakistan’s asset management industry while ensuring robust oversight and investor confidence.
