ISLAMABAD (Our Correspondent):- The government established Secured Transactions Registry (STR) for unincorporated entities to the SECP.
The government has entrusted the function of
Secured Transactions Registry for unincorporated entities to the (SECP.
The registry will record charges/security interests created by entities on their movable assets.
The Financial Institutions (Secured Transactions) Act, 2016 enacted to provide an integrated legal framework for creation of security interest over movable assets besides providing for establishment of a secured transactions registry for unincorporated entities.
The creation of secured transaction registry will facilitate small borrowers from SME. It will also facilitate the agriculture sector to secure credit from financial institutions against. They will also able to get loan against their movable assets, receivables and intellectual property. The SME and agriculture sectors also will get loan against inventory, agricultural produce, petroleum or minerals and motor vehicles etc.
It is also likely that the establishment of STR will improve Pakistan’s ranking in “getting credit” indicator of the World Bank’s Ease of Doing Business index. It will also require establishment of an integrated or unified collateral registry to register security interests. in movable assets by incorporated and unincorporated entities.
The SECP is already maintaining a registry of charges and security interests. This registry been created for moveable and immovable assets under the Companies Act, 2017.