Islamabad: The Securities and Exchange Commissions of Pakistan (SECP) has appointed the Registrar, Secured Transactions Registry, a news source reported. The appointment of the said official comes following the federal government’s notification for establishing the Secured Transactions Registry.
The registry is going to be responsible for implementing an effective regulatory and enforcement mechanism for registration of securities/charges interests created on assets by a particular entity. This is especially applicable to the moveable assets of borrowers.
The registry will operate from the SECP head office. It will support small-scale borrowers in obtaining secured credit from formal financial institutions.
The federal government issued the notification for the registry’s establishment while exercising its powers under Section 19 (1) of the Financial Institutions (Secured Transactions) Act, 2016.
According to sources, a few sectors of the Pakistani economy face difficulty in obtaining secured credit from financial institutions. Part of the problem is the sectors’ inability to offer acceptable collaterals to the financial markets. This is why the establishment of this registry has been taken as a welcome reform.
