AVN 66.95 Decreased By ▼ -0.15 (-0.22%)
BAFL 31.20 Increased By ▲ 0.20 (0.65%)
BOP 4.94 Increased By ▲ 0.04 (0.82%)
CNERGY 3.82 Increased By ▲ 0.04 (1.06%)
DFML 14.50 Increased By ▲ 0.07 (0.49%)
DGKC 42.10 Increased By ▲ 0.25 (0.6%)
EPCL 46.30 Decreased By ▼ -0.27 (-0.58%)
FCCL 11.71 Increased By ▲ 0.02 (0.17%)
FFL 5.14 Increased By ▲ 0.07 (1.38%)
FLYNG 5.80 No Change ▼ 0.00 (0%)
GGL 10.40 Increased By ▲ 0.07 (0.68%)
HUBC 68.60 Increased By ▲ 0.60 (0.88%)
HUMNL 5.84 Increased By ▲ 0.08 (1.39%)
KAPCO 28.11 Increased By ▲ 0.01 (0.04%)
KEL 2.30 Increased By ▲ 0.01 (0.44%)
LOTCHEM 24.95 Decreased By ▼ -0.10 (-0.4%)
MLCF 21.85 Increased By ▲ 0.16 (0.74%)
NETSOL 86.25 Increased By ▲ 0.25 (0.29%)
OGDC 98.81 Increased By ▲ 6.43 (6.96%)
PAEL 11.00 Decreased By ▼ -0.09 (-0.81%)
PIBTL 4.23 Increased By ▲ 0.01 (0.24%)
PPL 84.00 Increased By ▲ 3.85 (4.8%)
PRL 13.65 Increased By ▲ 0.01 (0.07%)
SILK 0.94 Increased By ▲ 0.04 (4.44%)
SNGP 44.12 Increased By ▲ 0.65 (1.5%)
TELE 5.93 Increased By ▲ 0.07 (1.19%)
TPLP 15.72 Decreased By ▼ -0.01 (-0.06%)
TRG 114.70 Decreased By ▼ -0.31 (-0.27%)
UNITY 13.80 Decreased By ▼ -0.05 (-0.36%)
WTL 1.16 Increased By ▲ 0.02 (1.75%)
BR100 4,140 Increased By 15.6 (0.38%)
BR30 15,225 Increased By 294.7 (1.97%)
KSE100 41,448 Increased By 257.3 (0.62%)
KSE30 15,624 Increased By 129.6 (0.84%)
Markets

SECP approves launch of first P2P Lending Platform in its Regulatory Sandbox

  • The P2P lending helps the borrowers give out short-term loans that enable the SMEs to scale up their business, eventually qualifying them to take bigger bank loans.
Published November 18, 2020
Follow us

The Securities and Exchange Commission of Pakistan (SECP) has granted approval for the launch of a Peer-to-Peer (P2P) Lending Platform under the first cohort of Regulatory Sandbox to support and encourage the Fintech revolution in the country.

As per details, P2P lending is an innovative alternative digital platform that connect borrowers with individual lenders, who come together to meet the borrowers' loan requirements. The P2P lending helps the borrowers give out short-term loans that enable the SMEs to scale up their business, eventually qualifying them to take bigger bank loans.

This current approval for testing and experimentation of a P2P Lending Platform by SECP is also attributed towards development of an ecosystem for SME financing to achieve higher growth prospects and to create new employment and business opportunities.

During the testing/experimentation stage, the P2P lending platform shall operate within pre-defined parameters and is subject to certain terms and conditions. Furthermore, specific eligibility criteria shall also apply on selection of each lender/borrower on the platform. These terms and conditions have been imposed to address the inherent risks involved in the operation of such platforms in the absence of a regulatory framework. However, these terms and conditions shall be reconsidered parallel to the results of the experimentation stage of the subject P2P Lending Platform. This will help the SECP devise the much needed enabling regulatory framework.

It is pertinent to mention that the SECP regulatory sandbox is the framework to accommodate provision of financial services that leverage new technologies. It allows FinTech firms to test their services and facilitate adoption of new technology in a live environment within the limited, well-defined scope.

Comments

Comments are closed.

SECP approves launch of first P2P Lending Platform in its Regulatory Sandbox

Policy-level talks with IMF begin today

NA clears Trade Dispute Resolution Bill, 2022

Imran optimistic about prospects of ‘jail bharo’ protest

APC will now be held on 9th

Cases in Karachi, Lasbela: IHC asks police not to take action against Rashid

Oil & gas sector leads PSX rally

Govt decides to enhance capacity of NEECA

Huge earthquake kills 2,700 in Türkiye, Syria

High-income earners directed to pay 50pc of super tax liability

IR officials deputed at 33 sugar mills in Punjab