Regulatory Alerts2022-03-17
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Circular No. 5 of 2022 – Inclusion of Housing Finance Companies in Government Markup Subsidy Scheme
Housing Finance Companies (HFCs) licensed by the Securities and Exchange Commission of Pakistan are included as Executing Agencies under the Government Markup Subsidy Scheme for Housing Finance. This inclusion follows approval by the Economic Coordination Committee and ratification by the Federal Cabinet, as communicated by the State Bank of Pakistan. The status is subject to eligibility criteria, financial soundness assessments, regulatory monitoring requirements, and markup subsidy payment mechanisms prescribed by the Commission.
SECURITIES AND EXCHANGE COMMISSION OF PAKISTAN
SPECIALIZED COMPANIES DIVISION
POLICY, REGULATION AND DEVELOPMENT DEPARTMENT
No. SC/NBFC-1-226/Circular/2022/
March 15, 2022
Circular No. 5 of 2022
Subject: Inclusion of Housing Finance Companies (HFCs) in Government Markup Subsidy Scheme (GMSS) for Housing Finance
In pursuance of the approval by the Economic Coordination Committee (ECC) and ratification by the Federal Cabinet on January 11, 2022, the State Bank of Pakistan (SBP) vide its letter No. IH&SMEFD.IHFD/MPMG/2022-02611 dated March 08, 2022 addressed to the Securities and Exchange Commission of Pakistan (the “Commission”) informed that it has included the Housing Finance Companies (HFCs) duly licensed by the Commission as Executing Agencies (EAs) under the Government Markup Subsidy Scheme (GMSS) for Housing Finance.
In view of the above, the Commission, in exercise of powers conferred under sub-section (3) of section 282B of the Companies Ordinance, 1984 (XLVII of 1984) read with regulations 28(e) of the Non-Banking Finance Companies and Notified Entities Regulations, 2008 is pleased to convey that HFCs duly licensed by the Commission are included as EAs under the GMSS for Housing Finance subject to the eligibility criteria, assessment of financial soundness of HFCs, regulatory monitoring requirements and markup subsidy payment mechanism as may be prescribed by the Commission.
Aamir Khan
Commissioner (SCD)
Distribution:
- Chief Executive Officers, Housing Finance Companies;
- Ministry of Finance – Internal Finance Wing;
- The Deputy Governor, State Bank of Pakistan;
- Development Finance Support Department of State Bank of Pakistan;
- Chairman Naya Pakistan Housing & Development Authority
NIC Building, 63 Jinnah Avenue, Blue Area, Islamabad.
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