ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP), under the leadership of Mr. Zafar Hijazi, Chairman of the SECP, has approved substantial amendments to the regulatory framework for the Non-Banking Financial Companies (NBFCs) inviting public’s comments, as released by Media and Corporate Communications Department of the SECP dated February 20, 2015.
The step has been taken in continuation of aim to improve the financial sector such as-improve access to finance and promoting a culture of savings and investment, leading to increase in the participation of retail investors in the capital market and enable the NBFCs to play a key role in the development of formal housing finance sector.
In order to ensure the management of NBFCs or institutions in line with the best practices, board of directors has been empowered to take ownership and act proactively. Moreover, to create specialization and focus on their operations, the NBFCs are also being categorized as lending NBFCs, fund management NBFCs and advisory NBFCs.
The drafts of the proposed regulatory framework have been placed on the SECP’s website. Comments from the public and other stakeholders in this regard have been sought by March 19, 2015.
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