SECP is­sues Ist fi­nance ser­vices li­cence to PRSP

Pakistan Observer - - EONOMIC WATCH - STAFF RE­PORTER

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.

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