The Securities and Exchange Commission of Pakistan (SECP) has introduced new requirements for Digital Asset Management Services (DAMS) offered by Digital Asset Management Companies (Digital AMCs).
The changes were issued through S.R.O. 1438(I)/2025, amending the Non-Banking Finance Companies and Notified Entities Regulations, 2008.
Under the updated framework, a “Digital Platform” is defined as any tool, application, software, or solution that uses digital or IT systems as the primary interface between the Digital AMC, investors, and other parties involved in delivering DAMS. This includes mobile apps, web portals, online channels, distribution platforms, and supporting digital services.
The procedure applies to Digital AMCs providing DAMS as well as Asset Management Companies using or planning to use digital platforms to deliver investment services. The regulations cover all platforms administered, owned, or managed by Digital AMCs.
To qualify, a Fund Management NBFC must clearly indicate its intention to obtain a DAMS license in Form-II of the NBFC Rules, alongside meeting all existing licensing conditions. Upon satisfaction, the SECP may grant an Asset Management Services license on the condition that the company will provide DAMS exclusively through digital platforms.
Applicants seeking DAMS authorization must also submit a five-year business plan with financial projections and supporting assumptions at the time of application.
The SECP stated that Digital AMCs must comply with all conventional AMC requirements under existing NBFC regulations, circulars, and directives unless otherwise modified through the new DAMS rules.
