Regulatory Alerts2021-12-21
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.