ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has issued the first investment finance services licence to Punjab Rural Support Programme (PRSP) for carrying out micro-financing as a non-bank microfinance company.
Under the new regulatory regime, micro-financing has become a regulated activity and all the entities other than microfinance banks undertaking microfinance activities are required to obtain a licence from the SECP.
During the last two months, SECP has been holding discussions and deliberations with Pakistan Microfinance Network (PMN), Pakistan Poverty Alleviation Fund (PPAF) and other microfinance institutions with the aim to onboard the microfinance institutions as non-bank microfinance companies. As a result, the SECP has already received a large number of licence applications from microfinance institutions which are currently being processed.
To provide operational flexibility for smooth transition of microfinance institutions into non-bank microfinance companies, the SECP has approved certain draft relaxations/amendments in the current regulatory framework for microfinance sector which will soon be notified.
