SECP grants licence

ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has issued the first investment finance services licence to Punjab Rural Support Program for carrying out micro-financing as a non bank microfinance company. Under the new regulatory regime micro financing has become a regulated activity and all the entities other than microfinance banks undertaking microfinance activities are required to obtain a license from SECP.

During the last two months, SECP has been holding discussions and deliberations with Pakistan Microfinance Network, Pakistan Poverty Alleviation Fund, and other micro finance institutions with the aim to take them on board as non-bank microfinance companies. As a result SECP has already received a large number of licence applications from MFIs which are currently being processed.

Further in order to provide operational flexibility for smooth transition of micro finance institutions into non-bank microfinance companies, the commission has approved certain draft relaxations amendments in the current regulatory framework for microfinance sector, which will soon be notified for public consultation and will become available on SECP s website.