SECP amends NBFIs rules

ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has approved amendments to the regulatory framework for the non-bank financial institutions (NBFIs) and sought the public’s comments by March 19, a press release from the SECP said on Friday.
The objective in the move is promotion of a culture of savings and investment and of participation of retail investors in the capital markets, it added.
The SECP intends to promote housing finance and to enable NBFIs to play a key role in the development of the formal housing finance sector, according to the press release.
The proposed regulatory framework will strengthen criteria for promoters and majority shareholders of the NBFIs as a means to ensuring that people most suitable for their positions are at the helm of affairs of NBFIs, it said. It added that a balance has been struck between the inherent risk in the operating structure of the NBFIs and the level of regulatory oversight and conditions imposed upon them.