RegAlert

Rule · SECP · 23 Nov 2016

Direction No. 37 of 2016: Maximum Cap on Placement/Deposit with MFBs/NBFCs and Modarabas

securities

An Asset Management Company, on behalf of each eligible collective investment scheme (CIS), shall not place funds of more than 25% of that CIS's net assets with all microfinance banks, non-bank finance companies and Modarabas. The restriction does not apply to sector specific funds and aggressive income funds. It takes effect immediately, and any CIS not currently in compliance must comply within ninety days of issuance or until maturity of existing TDRs/Fixed Deposit/Placements, whichever is later.

PakistanSecurities and Exchange Commission of Pakistan

SECP
SECURITIES AND EXCHANGE COMMISSION OF PAKISTAN SPECIALIZED COMPANIES DIVISION POLICY, REGULATION AND DEVELOPMENT DEPARTMENT

No. SCD/DIRECTION/320/2016
November 23, 2016

Direction No 37 of 2016

Maximum Cap on Placement /Deposit with MFBs/NBFCs and Modarabas

The Securities and Exchange Commission of Pakistan in exercise of the powers conferred under section 282D of the Companies Ordinance, 1984 hereby directs that an Asset Management Company (AMC), on behalf of each eligible collective investment scheme (CIS) shall not place funds (including TDR, PLS saving deposit, COD, COM, COI, money market placements and other clean placements of funds) of more than 25% of net assets of that CIS with all microfinance banks, non-bank finance companies and Modarabas.

Provided that the above restrictions will not be applicable on sector specific fund and aggressive income fund.

This direction shall come into force with immediate effect. However, in case of a CIS which is currently not in compliance with the aforementioned restriction shall ensure compliance within ninety (90) days of the issuance of this direction or until the maturity of existing TDRs/Fixed Deposit/Placements, whichever is later.

(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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  • Definition / condition 5
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The Companies Ordinance, 1984(Ordinance No. XLVII of 1984)1984 · PK-LAWThe Companies Ordinance, 1984 (Ordinance No. XLVII of 1984) (1984-10-08)Direction No. 37 of 2016:Maximum Cap on Placement/Depo…2016-11-23 · this documentDirection No. 37 of 2016: Maximum Cap on Placement/Deposit with MFBs/NBFCs and Modarabas (2016-11-23)
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