As part of its objective to promote ease of doing business, the Securities and Exchange Commission of Pakistan (SECP) has issued a procedural guide on the formation and licensing of Nonbank Finance Companies (NBFCs) in order to facilitate the prospective investors of the sector.
Available on the SECP’s website, this guidebook provides comprehensive information on the procedure for formation, incorporation, and licensing of NBFCs, in addition to details of applicable fees, other important pre-requisites, reference to the relevant legal provisions, forms, and formats.
The guide covers applicable requirements for the formation and licensing of Fund Management NBFCs as well as Lending NBFCs. Fund Management NBFCs provide services including Asset Management, Investment Advisory, REIT [real estate management trust] Management, Private Equity & Venture Capital Management, and pension fund schemes. Lending NBFCs provide services including Investment Finance Services, Discounting, Housing Finance, Microfinance, and Leasing.
By consolidating all the applicable requirements in one place, the guidebook would make it easier for prospective investors to understand and comply with the applicable regulatory regime.
Source: Pro Pakistani