SECP Issues New Rules for Digital Asset Management Services

The Securities and Exchange Commission of Pakistan (SECP) has introduced a new set of rules for Digital Asset Management Services, also known as DAMS. These rules apply to companies that want to offer asset management services through digital platforms. The update has been issued through S.R.O. 1438(I)/2025, which amends the Non-Banking Finance Companies and Notified Entities Regulations, 2008.

The goal of these new rules is simple. SECP wants to create a clear and secure framework for companies that manage investments through mobile apps, websites, and other online tools. As more people rely on digital services, the regulator aims to ensure transparency, safety, and proper oversight.

SECP Issues New Rules for Digital Asset Management Services

According to the new regulations, a “Digital Platform” is any tool or application that uses digital technology to connect investors, asset management companies, and other parties. This includes mobile apps, online portals, digital distribution platforms, and similar solutions. Any company using these digital tools to offer asset management services must follow the new requirements.

These rules apply to all Digital Asset Management Companies, also known as Digital AMCs. They also apply to traditional Asset Management Companies if they use digital platforms to serve their customers. In short, any company that wants to offer investment services through a digital interface must comply.

The eligibility criteria have also been updated. A Fund Management Non-Banking Finance Company (NBFC) must clearly declare its intention to obtain a DAMS license. This declaration must be made in Form II of the NBFC Rules. The company also needs to meet all existing conditions for acquiring a standard asset management license.

Once the SECP is satisfied, it may grant the company an Asset Management Services (AMS) license. However, the license can come with a key condition. The company may only be allowed to offer Digital Asset Management Services through digital platforms. This keeps the focus on digital delivery and ensures that companies build strong and reliable online systems.

Any NBFC that wishes to work in DAMS must submit a detailed business plan. This plan must include financial projections for at least five years. The company must also explain how it will operate, what digital tools it will use, and how it will manage risks. These requirements help the SECP evaluate whether the business is capable of running digital asset management services in a safe and sustainable way.

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SECP has also made it clear that Digital AMCs must meet all general rules that apply to regular Asset Management Companies. They must follow the NBFC Regulations, as well as all relevant circulars and directives. The only exceptions are rules that SECP has specifically modified or relaxed for digital services.

The new rules mark an important step in Pakistan’s digital finance journey. As more investors shift to online platforms, SECP’s updated framework aims to protect customers while encouraging innovation in the financial sector. These guidelines are expected to support growth, improve trust, and promote digital transformation in asset management services across the country.