SECP prescribes rating requirement for investment in short term instruments by CISs

BusinessSECP prescribes rating requirement for investment in short term instruments by CISs

ISLAMABAD, Pakistan: To protect unitholders’ investments in various schemes launched by asset management companies (AMCs) and to improve transparency and efficiency, the Securities and Exchange Commission of Pakistan (SECP) has specified rating requirement for investment in short term debt instruments by open-ended collective investment schemes (CIS).

The new requirements have been notified through Circular No. 9 of 2023.

   

The requirements have been introduced through amendments in earlier issued Circular No. 7 of 2009 (Categorization of Open-End Collective Investment Schemes).

The amendments were made in consultation with Mutual Fund Association of Pakistan (MUFAP), Pakistan Credit Rating Agency Limited (PACRA) and VIS Credit Rating Co. Limited (VIS).SECP prescribes rating requirement for investment in short term instruments by CISs

Through the said amendments, the credit rating of any short-term security in the portfolio of money market scheme shall not be lower than A1 (A One), whereas in case of income schemes, the rating of any short-term security in the portfolio shall not be lower than A 3 (A Three).

Further, in case of Shariah Compliant (Islamic) Scheme, the rating of short-term instruments in the portfolio shall not be lower than A 2 (A Two).

Likewise, in case of Balanced Scheme, the rating of any short-term debt security in the portfolio shall not be lower than A 2 (A Two).

The AMCs whose open-ended CISs have already taken exposure in below rated short term debt instruments shall comply with the requirement within a period of six (6) months from the date of publication of the Circular.

Mati
Mati
Mati-Ullah is the Online Editor For DND. He is the real man to handle the team around the Country and get news from them and provide to you instantly.

Must read

Recent News

Gates Foundation, PM’s Climate Aide vow to jointly work for Pakistan’s climate resilience building

0
ISLAMABAD, Pakistan: The Ministry of Climate Change and Environmental Coordination and Bill & Melinda Gates Foundation have agreed to work jointly for building Pakistan’s...

Ishaq Dar outlines key objectives of Pakistan’s foreign policy

0
ISLAMABAD, Pakistan: The Deputy Prime Minister and Foreign Minister Senator Mohammad Ishaq Dar on Tuesday addressed the 51st Foundation Day of the Institute of...

No new duties to be imposed on solar panels: PM

0
ISLAMABAD, Pakistan: Prime Minister Shahbaz Sharif has announced that no new duties will be imposed on solar panels to ensure common man's access to...

Interbank Dollar Rate Today in Pakistan – 25 June 2024

0
Interbank Exchange Rates in Pakistan The Interbank Closing Exchange Rate in Pakistan has been issued by the State Bank of Pakistan (SBP) for June 25,...

In some areas, terrorists still roam around at night: Khawaja Asif

0
LAHORE, Pakistan: The Defence Minister Khawaja Asif has said that in some areas, terrorists still roam around at night; however, he clarified that the...
Advertisement