SECP amends NBFC rules notifies entities regulations
ISLAMABAD—In light of strong determination of the Commission to promote “ease of doing business” in all the areas under its ambit, SECP has approved draft amendments in Non-Banking Finance Companies (Establishment & Regulation) Rules, 2003 and Non-Banking Finance Companies. In this connection , the commission has notified entities regulations, 2008 for smooth transition of Micro Finance Institutions (MFIs) into Non-Bank Microfinance Companies (NBMFCs), a statement issued by SECP here today said.
In order to provide operational flexibility for the smooth transition of MFIs into NBMFCs, the major amendments include relaxation in cross directorship requirement for NBMFCs for specified periods of time. SECP said that insertion of experience and knowledge in professions such as economics, social sector, development sector, microfinance sector for persons to become directors of NBMFCs in the Fit and Proper criteria. Similarly, changes related to obtaining of CIB Report and minimum investment in microfinance related assets have also been proposed. Notifications with regards to the amendments are placed on SECP website at the following links.
Moreover, considering the distinct operational nature of MFIs, SECP has exempted certain provisions of rules for those NBMFCs whose microfinance assets are less than 30% of their total assets.