SECP issues Ist finance services licence to PRSP
Currency Selling Buying ISLAMABAD—The Securities and Exchange Commission of Pakistan (SECP) has issued the first Investment Finance Services license to Punjab Rural Support Programme (PRSP) 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, a statement of the commission issued here Thursday.
During the last two months, SECP has been holding discussions and deliberations with Pakistan Microfinance Network (PMN), Pakistan Poverty Alleviation Fund (PPAF) and other Micro Finance Institutions (MFIs) with the aim to onboard the MFIs as Non-Bank Microfinance Companies (NBMFCs). As a result, SECP has already received a large number of license applications from MFIs which are currently being processed.
Further, in order to provide operational flexibility for smooth transition of MFIs into NBMFCs, 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.