ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has revised shareholding requirements for majority shareholders of the Non-Banking Finance Companies (NBFCs).

The SECP on Tuesday issued SRO 14 (I)/2024 to notify draft amendments in the Non-Banking Finance Companies (Establishment and Regulation) Rules, 2003.

According to the revised regulations, no person can hold or become beneficial owner of five per cent or more shares of a deposit taking NBFC and 10 per cent or more shares of any other NBFC without prior approval of the Commission.

Provided that the shares shall be deemed to be owned, held or controlled bya person if they are owned, held or controlled by that person individually or in concert with family members.

The “family members” in relation to a person means his spouse, dependent lineal ascendants and descendants and dependent brothers and sisters.

If the Commission has determined that a person is holding or is a beneficial owner of five percent or more shares of a deposit taking NBFC and ten percent or more shares of any other NBFC without prior approval of the Commission or a person that acquired shareholding with prior approval of the Commission subsequently fails to meet the fit and proper test as the Commission may, by an order in writing stating reasons, require such person to reduce, divest or transfer to a fit and proper person, his shareholding in the NBFC within such reasonable period and in such manner as may be specified in the order.

Provided that the Commission may, in the interest of the financial services market, the NBFC or general public, by an order in writing stating reasons, require any person to reduce, divest or transfer, his shareholding in the NBFC within such reasonable period and in such manner as may be specified in the order, SECP added.

Copyright Business Recorder, 2024