RegAlert2026-02-06
Added · Updated
Financing arrangements for CIS and PFs for smooth Transition to T+1 Settlement Cycle
Asset Management Companies and Pension Fund Managers are permitted to avail conventional or Shariah-compliant financing against unit subscriptions for Equity-oriented Collective Investment Schemes and Pension Funds to address cash shortfalls from uncleared banking instruments or conversion requests. The financing tenor is capped at three working days at market-based competitive rates, with the daily facility amount limited to the lower of 10% of the scheme's net assets or the specific cash shortfall. AMCs may also use their own funds to cover these requirements without charging costs, provided they pledge scheme securities and disclose all financing details, including costs and duration, in monthly reports. Trustees must monitor compliance and report any inconsistencies, while AMCs and PFMs submit fortnightly reports detailing the usage and outstanding exposure of such facilities.
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SECURITIES AND EXCHANGE COMMISSION OF PAKISTAN
SPECIALIZED COMPANIES DIVISION
FUND MANAGEMENT DEPARTMENT
No. SCD/CIRCULAR/23/2026 February 4, 2026
Circular No. 04 of 2026
Subject: Financing arrangements for Collective Investment Schemes and Pension Funds for smooth Transition to T+1 Settlement Cycle
In order to facilitate a smooth transition of the mutual fund industry to the T+1 settlement cycle, the Securities and Exchange Commission of Pakistan (“the Commission”), in exercise of the powers conferred under sub-section (3) of section 282B of the Companies Ordinance, 1984 (XLVII of 1984) read with Regulation 67A of the Non-Banking Finance Companies and Notified Entities Regulations, 2008, hereby allows that the Asset Management Companies (“AMCs”) and the Pension Fund Managers (“PFMs”) avail conventional or Shariah compliant financing facility (financing facility), if needed, against subscription of units, on behalf of Equity oriented Collective Investment Scheme and/or Equity oriented Pension Funds (CIS/PF), subject to the following conditions:
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Source: Securities and Exchange Commission of Pakistan — original document · Summary generated with machine assistance and reviewed before publication; the authoritative text is the regulator's original document. How RegAlert works
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