Regulatory Alerts2022-12-02
Added · Updated
Asset Backed Securitization Regulations, 2022
The Securities and Exchange Commission of Pakistan establishes regulations for Special Purpose Vehicles (SPVs) offering debt securities through securitization. SPVs must maintain a minimum paid-up capital of one million rupees and ensure their promoters and directors meet strict fit and proper criteria. The rules mandate that securitized assets possess cash-generating ability, are legally transferable, and are protected from the originator's insolvency. SPVs are prohibited from merging, pledging assets for non-investor benefits, or providing third-party guarantees without prior regulatory approval.
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