In order to broaden the scope of investment avenues for open-end money market collective investment schemes (CISs), the Securities and Exchange Commission of Pakistan (SECP) has allowed the money market CISs to take exposure in short-term corporate Sukuk along with commercial papers.
However, the cumulative exposure of money market CISs in commercial papers and/or short-term Sukuk is capped at 20 percent of the net assets of the CIS to mitigate the risk of money market CISs.
Furthermore, the existing money market CISs have been allowed a period of three months, starting from the date of publication of the said Circular, to ensure compliance with the aforesaid requirement.
This step reflects SECP’s continued commitment to providing a conducive environment to the country’s financial sector.