ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has issued a draft of amendments in the Non-Banking Finance Companies (Establishment and Regulation) Rules, 2003, for public consultation.
“In order to promote an enabling business environment and provide ease of doing business, the SECP, through these amendments, has proposed to introduce a perpetual licence for non-banking finance companies by replacing the existing requirement of renewal of licence after every three years,” said a statement issued by the commission.
The SECP has also proposed to allow a single NBFC to undertake different licenced activities. Moreover, the lending NBFCs will be required to obtain the Private Equity and Venture Capital (PE&VC) licence while the investment advisors will be allowed to manage and launch exchange-traded funds and listed collective investment schemes.
Also, to encourage the formation of new NBFCs, a more rationalized procedure to seek the commission’s permission to form an NBFC and obtain relevant NBFC licence has been proposed.
The draft amendments also streamline the requirements regarding sponsors and majority shareholders of NBFCs. It proposes that only first-time promoters shall be considered as sponsors while the person replacing a sponsor and holding less than 10pc shares will not be required to obtain approval of the SECP.
The requirement of blocking of shares is proposed to be applicable only when a person holds 10pc or more shareholding. Necessary provisions have also been introduced regarding the specification of capital adequacy requirements or any other requirement in addition to or in lieu of the minimum equity requirements for any form of business.