SECP announces modifications to NBFC regulations.
SECP announced that the Non-Banking Finance Companies (Establishment & Regulations) Rules, 2003 have been amended, with the permission of the federal government.
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In a news statement released today, the Securities and Exchange Commission of Pakistan (SECP) announced that the Non-Banking Finance Companies (Establishment & Regulations) Rules, 2003 have been amended, with the permission of the federal government.
The revisions aim to promote the establishment of a modern and conducive regulatory environment and reinvigorate growth in the non-banking finance industry. They were introduced following a thorough stakeholder engagement process.
Redundancies and requirements like submitting certified copies of the memorandum, articles of association, and certificate of incorporation, giving explanations for choosing the proposed place of business, statistical information, additional facts in support of the application, etc. have been removed to make doing business easier.
Furthermore, directors and chief executive officers may now just submit a declaration to this effect rather than affidavits attesting to the accuracy of information.
Furthermore, as the structure is no longer in place, the term "investment company" has been removed from the guidelines.
According to the SECP, enacting policies that facilitate business dealings and simplify licensing procedures is essential to the long-term viability of Pakistan's NBFC industry.
