Regulatory Alerts2023-04-05
Added · Updated
Amendments in NBFC Regulations, 2008
The Securities and Exchange Commission of Pakistan amends the Non-Banking Finance Companies and Notified Entities Regulations, 2008, to introduce definitions for digital fund management and micro-financing services while omitting several outdated provisions. Deposit-taking NBFCs are restricted to unsecured finance not exceeding fifty percent of their equity, and lending NBFCs must comply with specific margin requirements and borrower financial indicator benchmarks. The amendments impose new obligations on Asset Management Companies, including real-time data sharing with credit bureaus for digital lenders, ten-year record retention, and enhanced corporate governance and risk management policies. Additionally, the regulations update trustee requirements, establish minimum net asset thresholds for open-end schemes, and omit regulations concerning collective investment schemes to streamline compliance frameworks.