ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has allowed major relaxations to the Non-Bank Microfinance Companies (NBMFCs) for participation in Kamyab Pakistan Programme on wholesale loans and housing loans categories.
These relaxations have been allowed only in respect of the wholesale loans to be received by the NBMFCs from commercial banks and the housing loans to be extended by the NBMFCs under the program and Government’s Mark-up Subsidy Scheme for Low-Cost Housing.
In this regard, the SECP has issued circular number 23 of 2021, here on Friday to the chairman Working Group Kamyab Pakistan Program (President Bank of Punjab); Chief executive officers, Non-Bank Microfinance Companies and Pakistan Microfinance Network.
According to the SECP circular, the SECP, in exercise of powers conferred under sub-section (3) of section 282B of the Companies Ordinance, 1984 read with regulations I5B and 17(3) along with Regulation 67A of the Non-Banking Finance Companies and Notified Entities Regulations, 2008 (the “NBFC Regulations”), hereby allows following relaxation to Non-Bank Microfinance Companies (“NBMFCs”) for participation in Kamyab Pakistan Program (the “Program”) : -
(I); Wholesale loans to be extended by commercial banks to NBMFCs for onward extension of loans by NBMFCs under the program shall not be counted for calculation of Aggregate Liabilities of NBMFCs in terms of regulation 15B(1) of the NBFC Regulations.
(II); The NBMFCs shall be allowed to extend housing loans up to Rs2,700,000 under the programme.
The said relaxations are allowed only in respect of the wholesale loans to be received by NBMFCs from commercial banks and the housing loans to be extended by the NBMFCs under the programme and Government’s Mark-up Subsidy Scheme for Low-Cost Housing, the SECP added.
Copyright Business Recorder, 2021