Regulatory Alerts2022-06-21
Added · Updated
SRO 807(I)-2022 – Amendments to NBFC & NE Regulations, 2008 – P2P Lending
The Securities and Exchange Commission of Pakistan amends the Non-Banking Finance Companies and Notified Entities Regulations, 2008 to establish a regulatory framework for Peer-to-Peer (P2P) Lending. The amendments define key terms and introduce Part III B, which mandates that Lending NBFCs obtain specific permission to operate as P2P Service Providers, requiring a minimum additional equity of Rs. 20 million and robust IT infrastructure. The regulations impose prudential norms including a borrower loan cap of Rs. 1,000,000, a single lender exposure limit of Rs. 500,000, and a lender net worth requirement of at least Rs. 15 million. Furthermore, the document prohibits secured lending, direct international fund flows, and deposit raising, while enforcing strict data localization, escrow account usage, and transparency disclosure requirements.