According to a circular number 4 of 2020 issued by the SECP here on Tuesday, the SECP in exercise of powers conferred under section 282 B (3) of the Companies Ordinance, 1984 read with Regulation 55 (15) and 58(I)(p) and 67A of the Non-Banking Finance Companies and Notified Entities Regulations, 2008 hereby allows Asset Management Companies(AMCs) to invest in units of Exchange Traded Funds (ETF) on behalf Collective Investment Schemes (CIS) subject to following conditions:-

Firstly, equity oriented CIS namely equity, asset allocation, balanced and index schemes may take exposure in units of Exchange Traded Funds maximum up to 10 percent of net assets of such CIS. Secondly, an AMC shall charge single management fee in case of investment in the units of ETF if both the equity oriented CIS and ETF are being managed by the same AMC.

Copyright Business Recorder, 2020