The Securities and Exchange Commission of Pakistan (SECP) has allowed the open-end collective investment schemes to invest in Margin Trading System (MTS) in terms of the Rules 2011 with immediate effect.
"Pursuant to the promulgation of Securities (Leveraged Markets and Pledging) Rules, 2011, whereby a new leverage product namely, Margin Trading has been introduced and considering that "Continuous Funding System (CFS)" has been discontinued, the SECP, in exercise of powers conferred under Section 282 B (3) of Companies Ordinance, 1984 read with Regulation 55(2) of the Non-Banking Finance Companies and Notified Entities Regulations, 2008 hereby replaces the term "CFS" wherever appearing in Circular 7 of 2009 with the term "Margin Trading", a circular issued by SECP said.
Accordingly, the open-end collective investment schemes which are allowed to take exposure in CFS in terms of Circular No 7 of 2009 and their constitutive documents also permit to do so, may invest in MT in terms of the Rules, 2011, the circular said.