ISLAMABAD - The Securities and Exchange Commission of Pakistan (SECP) has proposed amendments to the Non-Banking Finance Companies and Notified Entities’ Regulations, seeking to safeguard the interests of shareholders.

The proposed amendments pertain to Regulation 65 of the Non-Banking Finance Companies and Notified Entities’ Regulations (NBFC&NE Regulations), 2008. The SECP is seeking comments and feedback from stakeholders on proposed amendments. The S.R.O. 1359(I)/2012 of November 5, 2012, has been placed on the SECP’s website for public information, and comments on it may be submitted at comments.nbfcregulations@secp.gov.pk by November 19.

These amendments have been proposed primarily to ensure smooth implementation of Regulation 65 which in case of the most CEFs has empowered the share/certificate holders to decide whether to convert these CEF into an open-end scheme or revoke it. 

The proposed amendments are in line with the best international practices and are expected to strengthen the existing regulatory framework in the larger interest of the NBC sector and for better investor protection.