SECP proposes amendments to NBFC rules

ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has proposed substantial amendments to the Non-Banking Finance Companies (Establishment & Regulation) Rules 2003, aimed at providing a more conducive regulatory environment to investors, a statement said on Thursday.
Under the proposed amendments, NBFCs have been categorised into three main types, lending, fund management and advisory NBFCs, it said.
Contrary to the prevalent regime, which only permits the issuance of licence to the companies initially incorporated as NBFCs, the companies which are not NBFCs, but fulfill the prescribed eligibility criteria have been allowed to obtain a licence for specific forms of businesses as NBFCs.
Asset management companies have been allowed to undertake other fund management activities such as real estate investment trust (REIT) management services, management of private pool of funds, etc, it said.
The detailed eligibility criteria encompassing various aspects such as type of the company, number of directors, rating requirements, etc, have been specified for different forms of businesses.
The federal government has granted approval to the commission to seek public comments on the proposed amendments, which have been published in the official gazette and placed on the SECP’s website.