The Secu-rities and Exchange Comm-ission of Pakistan (SECP) has told Non-Banking Finance Companies (NBFCs) that exposure limits for micro-financing has been fixed, ie, Rs 1,500,000 for housing loan to poor person, Rs 500,000 for general loans other than housing loan and Rs 1,500,000 for micro-enterprise.
Through SRO 490 (I)/2019 issued here on Friday, the SECP has proposed amendments to the Non-Banking Finance Companies and Notified Entities Regulations, 2008.
The SECP has further directed the NBFCs to provide information, prior to the launch of any new deposit taking product, about product disclosure statement, deposit taking instrument and approval of its Board of directors.
In case of micro financing, the following exposure limits shall be applicable:(a) poor person, Rs 1,500,000 for housing loan; Rs 500,000 for general loans other than hosing loan; micro enterprise, Rs 1,500,000."
The NBFC shall, seven days prior to the launch of any new deposit taking product and any subsequent amendment, provide information to the Commission along with product disclosure statement , deposit taking instrument and approval of its Board of directors: Provided that the NBFC shall place all the deposit taking products along with specimen instruments on its website for information of the general public and it shall be the responsibility of the NBFC to regularly update its website in this regard.
The SECP has further directed the NBFCs that all advertisements for any invitation to attract deposits either through advertisement by print, electronic or social media outlets or any other form or channel to the public or through private placement shall at the minimum contain the information including credit rating of the NBFC, name of the rating agency, date on which the credit rating was issued; minimum and maximum tenor of the deposit and expected profit rate to be paid on the deposits.
All advertisements for inviting a person to invest in a deposit taking scheme of an NBFC must contain the following Disclaimer: "The Certificate of Deposits of Non-Banking Finance Companies are subject to various risks including credit risk and liquidity risk. The prospective customers are advised to conduct their own due diligence prior to investing in Certificate of Deposits of a Non-Banking Finance Company," the SECP added.
The asset management company shall, before it applies for the registration of an Open End Scheme or Closed End Scheme, appoint the trustee which is registered with the Commission.
The SECP has specified that in case the amendments are proposed in the fundamental attributes of CIS and/or amendments with respect to offering of units to public and maturity of fund/plan, they shall be subject to the prior approval of the Commission. In case amendments are made in the Constitutive Documents due to change in regulatory requirements, the same shall "be incorporated without prior approval of the Commission. The supplement Constitutive Document for amendments shall be submitted to the Commission for information within one week from the date of amendments."
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