RegAlertRule · SECP · 13 Jan 2017
Direction No. 02 of 2017: Liquidity Requirements for Mutual Funds
All Asset Management Companies must maintain at least 5% of net assets in cash and near cash instruments in Equity Funds (other than dedicated equity funds) and Funds of Funds, with non-compliant AMCs to comply by February 15, 2017. They must arrange committed credit lines from banks/DFIs equal to 15% of each fund's net assets by March 1, 2017 for redemption purposes. Where redemption requests exceed 10% of total units in issue on any dealing day, redemption requests of AMCs and their sponsors have least priority that day.
SECP
SECURITIES AND EXCHANGE COMMISSION OF PAKISTAN SPECIALIZED COMPANIES DIVISION POLICY, REGULATION AND DEVELOPMENT DEPARTMENT
No. SCD/DIRECTION/380/2017
January 13, 2017
Direction No. 02 of 2017
Liquidity Requirements for Mutual Funds
The Securities and Exchange Commission of Pakistan in exercise of the powers conferred under section 282D of the Companies Ordinance, 1984 hereby directs that all Asset Management Companies (AMCs) shall comply with the following requirements :-
1. At all times, an AMC shall maintain at least 5% of net assets in cash and near cash instrument in Equity Funds (other than dedicated equity funds) and Funds of Funds. The AMCs that are currently not complying shall ensure compliance latest by February 15, 2017.
2. An AMC shall arrange committed credit lines from banks/DFIs equivalent to 15% of net assets of each fund latest by March 1, 2017 for redemption purposes.
3. In case, where redemption requests exceed ten per cent of the total number of units in issue of fund on any one dealing day, the redemption requests of AMCs and its sponsors, if any, shall have least priority for redemption on that day.
(Imran Inayat Butt)
Executive Director (SCD)
Distribution:
1. Chief Executive of All Asset Management Companies.
2. Mutual Funds Association of Pakistan.
3. Trustees of Collective Investment Schemes.
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- Obligation 4
- Definition / condition 4
- background, boilerplate
Lineage: Amended
A newer document in RegAlert amends this one; it applies as amended.
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- Amended by
“hereby makes the following amendments to the condition no. 1 and 2 of the above-referred Direction”
Mentions (1): 1 document mentions this one without changing it
- Referred to by
- Master Circular for Mutual Funds, Collective Investment Schemes, and Investment Advisory Services2022 · SECP
“111 SECP Direction No. 2 of 2017 dated January 13, 2017”
Timeline
Amended 1 time · last 2017-03-03
- 2017-03-03
SECPDirection No. 07 of 2017: Amendments in Direction No. 02 of 2017amends
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