The Securities and Exchange Commission of Pakistan (SECP) has permitted the “Money Market Schemes” of mutual funds to invest in Government Debt Securities (Sukuks/Government Securities) for the promotion of the capital market.
The SECP’s circular/directive issued on Saturday said that to enhance and promote the capital markets and ensure wider participation of mutual funds in one year of Government Debt Securities (Sukuks/Government Securities) to be raised and traded through the Pakistan Stock Exchange, the Commission, hereby, allows the Money Market Schemes to invest in Government Debt Securities, with a maturity exceeding six months and up to one year for 12 months from the date of this direction unless extended.
The SECP has issued directions to the mutual funds industry in the exercise of its powers conferred under section 2828(3) of the Companies Ordinance 1984 read with Regulation 55(2) of the Non-Banking Finance Companies and Notified Entities Regulations, 2008 (the “Regulations”).
This is subject to the following conditions:
All the other conditions applicable to money market schemes including the risk profile through the prevalent Regulations, Circulars, and Directions shall remain intact. The respective “Money Market Schemes” shall incorporate enabling provisions/distinctive disclosure in the relevant offering documents as required under Regulation 44(9) of the Regulations, SECP’s directions added.