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Ordinance issued: Non-banking finance companies asked to get licence from Securities, Exchange Commi

ISLAMABAD (November 16 2002) : The government has issued Companies (Second Amendment) Ordinance which asks every non-banking finance companies (NBFCs) to get licence form the Securities and Exchange Commission of Pakistan. It specifies rule for establishing any non-banking finance company.

The companies having business of investment finance services, leasing, housing finance services, venture capital investment, discounting services, investment advisory services, asset management services, any other form of business which the federal government may by notification in the officials gazette specify form time to time.

The rules about the officials of the companies, paid up capital and the operation of business would be regulated by the SECP according to the conditions as it deem fit.

The SECP would have powers to suspend the Board of Directors of the company if it not working properly in interest of the public. The SECP can ask information as per the requirement to regulate and watch it. It can also order a special audit of the company.

It can also hold an inquiry according to the needs of its regulatory role. The SEC can impose penalty if the company does not comply with or make any false statement or contravention of any provision of the Ordinance.

The Ordinance also specifies the rule for companies to amalgamate.

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