SECP Discusses New Rules for Real Estate Companies

Recently, a session was held by the Association of Builders and Developers (ABAD) and the Securities and Exchange Commission of Pakistan (SECP) to deliberate on the implementation of a mechanism in the Companies Act 2017 on the taking of advance payments by real estate firms.

According to the proposed rules, the companies would have to obtain an SECP No-Objection Certificate (NOC) before the advertising of new projects, and are to hold deposits of buyers to be deposited in escrow accounts within the project.

The idea is to safeguard the money of investors, enhance transparency, and develop trust among people, but developers could be subjected to even higher standards of compliance.