GMSS for housing finance: SECP includes licensed HFCs as executing agencies

ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has included licensed Housing Finance Companies (HFCs) as executing agencies (EAs) under the Government Markup Subsidy Scheme (GMSS) for housing finance.

The government has taken the decision to facilitate housing finance in the country. In this regard, the SECP has issued a circular on the inclusion of HFCs in the GMSS for housing finance.

According to the SECP’s circular (5 of 2022), in pursuance of the approval by the Economic Coordination Committee (ECC) and ratification by the Federal Cabinet on January 11, 2022, the State Bank of Pakistan (SBP) vide its letter dated March 8, 2022, addressed to the SECP (the “Commission”) informed that it has included the HFCs duly licensed by the Commission as EAs under the GMSS.

In view of the above, the Commission, in exercise of powers conferred under sub-section (3) of section 282B of the Companies Ordinance, 1984 read with regulations 28(e) of the Non-Banking Finance Companies and Notified Entities Regulations, 2008 is pleased to convey that the HFCs duly licensed by the Commission are included as EAs under the GMSS for Housing Finance subject to the eligibility criteria, assessment of financial soundness of HFCs, regulatory monitoring requirements and markup subsidy payment mechanism as may be prescribed by the Commission, the SECP added.

Copyright Business Recorder, 2022