ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has proposed amendments to the Non-Banking Finance Companies (NBFC) Regulations, eliminating the 100 per cent equity cap on total unsecured exposures.

The amendments in the NBFC Regulations 2008 will also facilitate the adoption of new technologies, improve the ease of doing business and enhance investor protection. The amendments include provisions to enable the launch of digital fund management, lending and trustee services, etc.

Provisions also include enabling Asset Management Companies (AMCs) to promptly notify unit holders of account activity and maintain the confidentiality of client information. Redundant and superfluous provisions have been removed. NBFCs have been allowed to meet the minimum investment requirement in their primary business in a year.

Investment advisers can now provide portfolio management services to all investors as being practised in countries like Canada, India and Malaysia.

The deadline for submitting CEO applications has been increased from 10 to 30 days.

Furthermore, enabling provisions have been introduced to allow certain financial institutions to distribute units of CIS/VPS without obtaining a license, subject to compliance with S&FA Regulations.

Published in Dawn, April 6th, 2023