SECP notifies amendments to NBFC Rules 2003

Islamabad: The Securities and Exchange Commission of Pakistan (SECP), with the approval of the federal government, has notified amendments to the Non-Banking Finance Companies (Establishment and Regulations) Rules, 2003.

According to a news release released here on Friday, the revisions, which were introduced following an in-depth stakeholder engagement process, aim to revive growth in the non-banking finance industry and make it easier to construct a modern and beneficial regulatory environment.

Moreover, it is now easier to conduct business due to the removal of redundant steps and regulations like those requiring the submission of certified copies of the memorandum, articles of association, and certificate of incorporation, the justification for choosing the proposed location of the business, statistical information, additional facts to support the application, etc.

Additionally, directors and chief executive officers are merely permitted to provide a declaration about the accuracy of information rather than longer being required to present affidavits to that effect. Additionally, because the organization no longer exists, the term "investment company" has been removed from the guidelines.

The SECP thinks that reducing licensing procedures and enacting policies to make it easier to do business are essential for the long-term viability of the NBFC industry in Pakistan.