ISLAMABAD: In order to broaden the scope of investment avenues for Open-End Money Market Collective Investment Schemes (CISs), the Securities and Exchange Commission of Pakistan (SECP) has allowed the Money Market CISs to take exposure in short term corporate Sukuk along with commercial papers.

In this connection, the SECP has issued circular number 11 of 2022 here on Monday.

However, the cumulative exposure of Money Market CISs in commercial papers and/or short term Sukuk is capped at 20 percent of net assets of the CIS to mitigate the risk of Money Market CISs.

SECP introduces concept of digital AMCs

Furthermore, the existing money market CISs have been allowed a period of three months, starting from the date of publication of the said Circular, to ensure compliance with the aforesaid requirement.

This reflects SECP’s continued commitment to provide a conducive environment to the country’s financial sector. Circular 11 can be accessed at https://www.secp.gov.pk/document/circular-no-11-of-2022-categorization-of-open-end-money-market-collective-investment-schemes-ciss/.

Copyright Business Recorder, 2022