ISLAMABAD: Punjab Rural Support Program has become the first scheme to get Investment Finance Services license by the Securities and Exchange Commission of Pakistan (SECP).
The Punjab Rural Support Program has been launched to carry 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 license from 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 Micro Finance Institutions (MFIs) with the aim to onboard the MFIs as Non-Bank Microfinance Companies (NBMFCs). As a result, SECP has already received a large number of license applications from MFIs which are currently being processed.
Further, in order to provide operational flexibility for smooth transition of MFIs into NBMFCs, the Commission has approved certain draft relaxations/amendments in the current regulatory framework for microfinance sector which will soon be notified for public consultation and will become available on SECP’s website.
