SECP urges investors to set up house finance companies.

ISLAMABAD -- The SecuAriAties and Exchange ComAmission of Pakistan (SECP) on Friday called upon investors - including the banking sector - to establish Housing Finance ComApanies (HFCs) for availing benefits of the sector.

As part of its initiative to promote affordable housing in country, the SECP urged investors to play a forefront role in establishing housing mortgage and housing loan businesses.

At an SECP webinar, organised in collaboration with the Pakistan Mortgage Refinance Company (PMRC) and International Finance Corporation (IFC), SECP CommisAsioner for Specialised Companies Farrukh Sabzwari pinpointed major challenges being faced by the sector.

'The commission would provide handholding to potential investors willing to form HFCs under the Non-Banking Finance Companies (NBFC) regulations,' Mr Sabzwari said.

He highlighted the significance of the housing finance sector, its overarching link with more than 40 ancillary industries and discussed the opportunities presented by the underserved housing finance market for potential new players.

The SECP had notified amended NBFC regulations in 2020. HFCs are established by the NBFCs.

Under the regulations, an NBFC will determine the housing finance limit, both in urban and rural areas, in accordance with its internal credit policy, credit worthiness and loan repayment capacity of the borrowers.

While in case of 'Housing Finance' to...