SECP entrusted with STR function

ISLAMABAD: The federal government has entrusted the Secured Transactions Registry (STR) function for unincorporated entities to the Securities and Exchange Commission of Pakistan (SECP). “The registry will record charges and security interests created by entities on their movable assets,” an SECP statement said on Monday. The Financial Institutions (Secured Transactions) Act 2016 was enacted to provide an integrated legal framework for the creation of security interests over movable assets besides providing for the establishment of the STR for unincorporated entities. The creation of the registry would facilitate small borrowers from small and medium enterprises and the agriculture sector in securing credit from financial institutions against their movable assets such as receivables, intellectual property, inventory, agricultural produce, petroleum, minerals and motor vehicles, the SECP said. “It is likely that the establishment of the STR will improve Pakistan’s ranking in the “getting credit” indicator of the World Bank’s Ease of Doing Business index.

Published in The Express Tribune, May 14^th, 2019.

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