SECP to amend non-banking finance companies’ regulations

Calls for comments and feedback on statutory regulatory order.

ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has proposed amendments to the Non-Banking Finance Companies and Notified Entities’ (NBFC&NE) Regulations, seeking to safeguard the interests of shareholders. The proposed amendments pertain to Regulation 65 of the NBFC&NE Regulations 2008.

The SECP is seeking comments and feedback from stakeholders on proposed amendments. The statutory regulatory order 1359(I)/2012 of November 5, 2012, has been placed on the SECP’s website for public information, and comments on it may be submitted at [e-mail] by November 19.

These amendments have been proposed primarily to ensure smooth implementation of Regulation 65, which in the case of most closed-end funds (CEFs) has empowered share and certificate holders to decide whether to convert these CEFs into an open-end scheme or revoke it.

The proposed amendments are expected to strengthen the existing regulatory framework.

Published in The Express Tribune, November 9^th, 2012.