SECP
SECURITIES AND EXCHANGE COMMISSION OF PAKISTAN SPECIALIZED COMPANIES DIVISION FUND MANAGEMENT DEPARTMENT

No. SCD/DIRECTION/ 33 of 2023
December 06, 2023

Direction No. 17 of 2023

Subject: Categorization of Open-End Collective Investment Schemes (CIS)

In order to enhance and promote the capital markets and ensure wider participation of mutual funds in one year Government Debt Securities (Sukuks/Government Securities) to be raised and traded through Pakistan Stock Exchange, the Securities and Exchange Commission of Pakistan ("the Commission"), in exercise of its powers conferred under section 282B(3) of the Companies Ordinance 1984 read with Regulation 55(2) of the Non-Banking Finance Companies and Notified Entities Regulations, 2008 (the "Regulations"), hereby, allows the Money Market Schemes to invest in Government Debt Securities, with a maturity exceeding six months and up to one year, for a period of 12 months from the date of this direction unless extended subject to the following conditions:

1. requirement for weighted average time to maturity of the net assets including government securities shall remain as "not exceed 90 days";

2. the respective monthly fund manager report shall include the disclosure of the actual exposure in above referred Government Debt Securities with a maturity exceeding six months and up to one year, calculated as a percentage of Net Assets; and

All the other conditions applicable to money market schemes including the risk profile through the prevalent Regulations, Circulars and Directions shall remain intact.

Note: Respective Money Market Schemes shall incorporate enabling provisions/distinctive disclosure in the relevant offering documents as required pursuant to Regulation 44(9) of the Regulations.

(Mujtaba Ahmad Lodhi)
Commissioner (SCD)

Distribution:

1. Chief Executive Officers, Asset Management Companies

2. Mutual Funds Association of Pakistan

3. Trustees of Collective Investment Schemes

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