RegAlert2021-12-21
Added · Updated
Amendments to NBFC&NE Regulations, 2008 regarding NBMFCs and Housing Standards
The Securities and Exchange Commission of Pakistan amends the Non-Banking Finance Companies and Notified Entities Regulations, 2008 to impose additional risk management, funding, liquidity, and credit underwriting requirements on Non-Bank Micro Finance Companies (NBMFCs) with a gross loan portfolio of Rs. 500 million or more. The amendments introduce a Code of Corporate Governance in Schedule XIIA, mandating specific board compositions, committee structures, and auditor appointment rules, while Schedule XIIIA establishes Minimum Housing Finance Underwriting Standards for housing finance activities. NBMFCs must comply with new borrowing limits based on debt-to-equity ratios and create a special reserve fund, with non-compliant entities granted one year to adhere to funding restrictions.
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GOVERNMENT OF PAKISTAN
SECURITIES AND EXCHANGE COMMISSION OF PAKISTAN -.-.-.- Islamabad, the 14th December, 2021 NOTIFICATION S.R.O. 1605 (I)/2021.- In exercise of the powers conferred by sub-section (2) of section 282B of the Companies Ordinance, 1984 (XLVII of 1984), the Securities and Exchange Commission of Pakistan hereby makes the following amendments in the Non-Banking Finance Companies and Notified Entities Regulations, 2008, the same having been previously published in the official Gazette vide S.R.O 370 (I)/2021dated March 29, 2021 and vide S.R.O. 582(I)/2021 dated May 20, 2021, namely: - AMENDMENTS In the aforesaid Regulations, (1) in regulation 28, in clause (e), - (a) in sub-clause (viii) the word “and” appearing at the end shall be omitted, (b) in sub-clause (ix), after the expression “takaful companies;”, the word “and” shall be inserted and thereafter a new sub-clause (x) shall be added, namely: - “(x) implement such Minimum Housing Finance Underwriting Standards for sound housing finance underwriting and risk management practices as provided in Schedule XIIIA;”; (2) after regulation 29, the following new Part and regulations shall be added, namely: - “PART III A Additional Requirements for NBMFC’s
30. Application of this Part. - The provisions of this part shall apply to Non-Bank
Micro Finance Companies and are in addition to other applicable requirements under these regulations.
31. Risk Management – Non-Bank Micro Finance Companies having a gross loan
portfolio of Rs. 500 million or more, shall follow the following guidelines on risk management that provide minimum benchmark of best practices. Non-Bank Micro Finance Companies shall, - (a) devise and implement a comprehensive risk management framework duly approved by its board to identify, assess, and prioritize risks, develop
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Source: Securities and Exchange Commission of Pakistan — original document · Summary generated with machine assistance and reviewed before publication; the authoritative text is the regulator's original document. How RegAlert works
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SECP published 3 documents in the last 30 days. We email you each new one the day it's published.