Central Depository Company of Pakistan Limited (CDC), through its subsidiary ITMinds Limited, has launched the pilot version of a digital platform to support the Mutual Fund industry. This platform, named “Emlaak Financials”, will function as a digital distribution channel initially for Mutual Funds and later on for other asset classes.
Commissioner of Specialized Companies Division (SCD) of the Securities and Exchange Commission of Pakistan (SECP), Farrukh Sabzwari, presided over the event.
In the first phase, ‘Emlaak Financials’ will provide a low-cost and centralized solution to the investors, initially through covering low-risk investors, but soon will be expanded to a full-fledged distribution mechanism for all types of investors.
CDC has launched the pilot project with five AMCs. However, soon more AMCs will be taken on board on the platform. CDC officially announced and formalized the launch of the pilot project in an Agreement Signing Ceremony at the CDC House, Karachi.
Addressing the occasion, Sabzwari said, “It is indeed a very important milestone for the Mutual Fund Industry as it embarks on this consolidated digital distribution channel launched for the first time in Pakistan.”
We, at SECP, are strong proponents of re-engineering processes for promoting efficiency and transparency through digitalization and will continue to support and encourage all such initiatives by providing all the required Regulatory assistance in this regard.
SCD Commissioner said that Pakistan’s mutual fund segment stands at a meager 1.6 percent of the GDP, which is very low compared to the market’s potential. He said that limited outreach and focus on specific market segments is a major obstacle in moving the needle. “The pivotal role of innovation in economic development is undeniable, and I congratulate CDC on coming up with this innovative solution for the Mutual Fund Industry, which will lead to higher productivity, reduced turnaround times, lower costs and wider outreach,” he said.
CDC Cheif Executive, Badiuddin Akber, said,
After the successful integration of Roshan Digital Accounts with the Capital market, CDC is now launching this new FinTech solution, which aims to pave the way for the growth of the Mutual Fund Industry and for promoting financial inclusion in Pakistan at the grass-root level.
He said, “CDC is committed to providing innovative tech-based platforms to Capital Market entities through which they can leverage CDC’s technological edge to enhance their investor outreach in a convenient, informative and interactive manner.”