The Securities and Exchange Commission of Pakistan (SECP) has approved the country’s first peer-to-peer (P2P) lending service provider, a significant step towards encouraging innovation and protecting investors and consumers.
SECP underlined?the formation of “Finja Invest” as Pakistan’s first P2P service provider platform in a press release, citing it as an important turning point in the country’s digital transformation and the long-term development of its financial industry. To get approval, Finja Lending Services Limited (FLSL) completed rigorous testing in SECP’s Regulatory Sandbox.
The service provider’s compliance with regulatory rules, risk management processes, data protection measures, and overall operational efficiency were all inspected during the evaluation process.
Moreover, under the existing NBFC Regulations, 2008, SECP had previously built a regulatory framework for P2P lending. This framework assures that P2P service providers operate in a transparent, secure, and compliant manner, encouraging trust among investors and borrowers.
Recognising the potential of peer-to-peer lending as a financing option that empowers individuals and small enterprises, SECP seeks to bridge the gap between borrowers and lenders while also contributing to the expansion and accessibility of financial services.
Meanwhile, SECP registered 2,539 new firms in May 2023 a few days ago, raising the overall number of registered companies to 194,466. The total paid-up capital (capitalization) of the May firms was Rs. 2.7 billion.
Around 57% of firms were registered as private limited companies, 40% as sole proprietorships, and 3% as limited liability partnerships, not-for-profit organisations, and unlisted public corporations (LLP). Almost 99.7% of firms are?registered online. There are 65 foreign applicants among the new registrations.
With 407 firms formed, the information technology industry led the way, followed by trading (339), real estate development and construction (331), and services (287). Similarly, 112 enterprises have been created in the food and beverage industry, 102 in tourism, 81 in education, and 66 in e-commerce. In other sectors, 814 firms were formed.