SECP issues licensing checklists for REIT, section 42 companies

May 05, 2025 (MLN):The Securities and Exchange Commission of Pakistan (SECP) has issued checklists for obtaining licenses for Real Estate Investment Trust (REIT) Management Companies and companies licensed under Section 42 of the Companies Act, 2017 (Associations with Charitable and Not-for-Profit Objectives).

This initiative is part of SECP’s ongoing efforts to enhance regulatory clarity, promote ease of doing business, and improve the efficiency of regulatory processes.

The checklist for REIT Management Companies is designed to assist sponsors, promoters, and other stakeholders in understanding and fulfilling the procedural and documentation requirements prescribed under the Non-Banking Finance Companies (Establishment and Regulation) Rules, 2003 and the Real Estate Investment Trust Regulations, 2022.

It provides structured guidance on the prerequisites for obtaining SECP’s permission to establish a Non-Banking Finance Company (NBFC) and applying for a license to undertake REIT management services.

Similarly, SECP has issued a dedicated compliance checklist for Section 42 companies to assist not-for-profit entities in meeting their legal obligations under the Companies Act, 2017.

The checklist outlines essential requirements related to licensing, governance, financial reporting, and disclosures, enabling applicants to prepare complete and accurate submissions from the outset.

By consolidating key regulatory steps into a single, accessible document, the checklists are expected to significantly reduce processing times, minimize incomplete or deficient applications, and streamline the licensing process for both applicants and the regulator.

To further institutionalize stakeholder facilitation, SECP has introduced additional channels for complaint registration and resolution across all Company Registration Offices (CROs).

These measures aim to improve accessibility, ensure timely grievance redressal, and strengthen stakeholder engagement.

The initiative underscores SECP’s commitment to transparency, service delivery, and regulatory responsiveness.

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