SECP amends NBFC rules no­ti­fies en­ti­ties reg­u­la­tions

Pakistan Observer - - ECONOMY WATCH - STAFF REPORTER

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.

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