In a move to curb the widespread issue of looting billions of rupees from unsuspecting consumers through online loan scams, the Securities and Exchange Commission of Pakistan (SECP) has tightened the rules for online loan apps.
Addressing the media at a workshop in Islamabad on Tuesday, SECP officials revealed that the regulatory body is taking action to curb online scamming of unsuspecting individuals who were being charged exorbitant interest rates. Under the new regulations, online companies are restricted from providing loans exceeding Rs. 25,000 to a single user.
Officials stated that companies are now prohibited from charging customers more than double the loan amount during the repayment process. This measure aims to protect consumers from the predatory lending practices that were prevalent in the industry.
According to the SECP, a customer is now limited to borrowing up to Rs. 75,000 simultaneously from three different lenders. This move is a response to the prior exploitation of consumers, with companies previously charging more than five times the tax on loans.
Meanwhile, officials disclosed that the SECP is considering the proposal of conducting electronic voting in the general meetings of companies’ shareholders. This initiative aims to enhance transparency and streamline the decision-making process within corporate structures.
Trading through WhatsApp in the name of broker houses was also declared prohibited by the agency. Officials emphasized that such practices would be prosecuted.
Moreover, stock markets are being equipped with call-recording capabilities. While acknowledging the challenges of proving insider trading cases in court, officials expressed their commitment to investigating and penalizing such offenses.
Moreover, stock markets are being equipped with call-recording capabilities. While acknowledging the challenges of proving insider trading cases in court, officials expressed their commitment to investigating and penalizing such offenses.
