The Securities and Exchange Commission of Pakistan (SECP) and the Karachi Stock Exchange (KSE), in a meeting held here on Wednesday, decided to launch Equity Market Opportunity Fund (EMOF) with an initial sum of Rs 10 billion instead of Rs 50 billion. It is expected that the Fund would be launched in next few days.
The meeting also decided that the mark-to-market losses would be recovered in five instalments to avoid defaults in futures market. Saad Bin Ahmed, Head of Research at Capital One Equities, said that earlier the SECP and the KSE had decided to launch Rs 50 billion Equity Market Opportunity Fund. However, they decided to launch this Fund with an initial sum of Rs 10 billion, commitments for which have been received.
He said that main agenda of the meeting was to bail out the futures investors. The decision to recover mark-to-market losses in five instalments was the major development and will ease the situation, Saad Bin Ahmed added.
Meanwhile, both the SECP and the KSE, in a press release, said that they also met here with financial institutions to discuss the Equity Market Opportunity Fund.
According to a press release, initial financial commitments were received and the participants are meeting to finalise the structure and mechanics of the Fund. The launch date will be intimated in due course, the press release added.