In a determined effort to combat the rampant issue of online loan scams bilking unsuspecting consumers of billions of rupees, the Securities and Exchange Commission of Pakistan (SECP) has reinforced regulations governing online loan apps.
SECP officials, addressing the media during a workshop in Islamabad, unveiled the enhanced measures aimed at curbing scams that subjected individuals to exorbitant interest rates. The new regulations stipulate that online companies are now restricted from providing loans exceeding Rs. 25,000 to a single user.
Under the tightened rules, companies are prohibited from charging customers more than double the loan amount during the repayment process, effectively shielding consumers from predatory lending practices prevalent in the industry.
In response to prior exploitations, the SECP now limits a customer to borrow up to Rs. 75,000 simultaneously from three different lenders. This move seeks to counter the practice of companies charging more than five times the tax on loans.
Simultaneously, SECP officials disclosed the consideration of implementing electronic voting in companies’ general meetings, with the goal of boosting transparency and streamlining decision-making within corporate structures.
The agency also clamped down on trading through WhatsApp in the name of broker houses, declaring such practices illegal and subject to prosecution.
Notably, the SECP is enhancing stock markets with call-recording capabilities to address challenges in proving insider trading cases in court. Officials reiterated their commitment to investigating and penalizing such offenses, reinforcing the drive for market integrity.
