SECP Specifies Rating Requirements For Investment In Short-term Instruments By CISs
Muhammad Irfan Published June 02, 2023 | 05:50 PM
ISLAMABAD, Jun 2 (UrduPoint / Pakistan Point News - 2nd Jun, 2023 ) :The Securities and Exchange Commission of Pakistan (SECP) has specified rating requirements for investment in short-term debt instruments by open-ended collective investment schemes (CISs) aimed at protecting unitholders' investment in various schemes launched by asset management companies (AMCs) and improving transparency and efficiency.
"The new requirements have been notified through Circular No. 9 of 2023, which is available at https://www.secp.gov.pk/document/circular-no-9-of-2023-short-term-rating-requirements-for-cis/?wpdmdl=47944&refresh=6479d45fa814f1685705823," the SECP said in a news release on Friday.
The SECP said the requirements had been introduced through amendments in earlier issued Circular No. 7 of 2009 (Categorization of Open-End Collective Investment Schemes). "The amendments were made in consultation with Mutual Fund Association of Pakistan (MUFAP), Pakistan Credit Rating Agency Limited (PACRA) and VIS Credit Rating Co.
Limited (VIS)." Through the amendments, the SECP said the credit rating of any short-term security in the portfolio of money market scheme would not be lower than A1 (A One), whereas, in the case of income schemes, the rating of any short-term security in the portfolio would not be lower than A 3 (A Three).
Further, in the case of the Shariah Compliant (Islamic) Scheme, the rating of short-term instruments in the portfolio would not be lower than A 2 (A Two), it said.
Likewise, in case of the Balanced Scheme, the rating of any short-term debt security in the portfolio would not be lower than A 2 (A Two).
"The AMCs whose open-ended CISs have already taken exposure in below rated short term debt instruments shall comply with the requirement within a period of six (6) months from the date of publication of the Circular."
Related Topics
Recent Stories
Pakistan v New Zealand T20I series: Tickets to go on sale from today
Currency Rate In Pakistan - Dollar, Euro, Pound, Riyal Rates On 29 March 2024
Today Gold Rate in Pakistan 29 March 2024
Journalists call for global action to end Gaza’s humanitarian crisis
CM for generating opportunities to bring direct int'l investment
Pakistan retains position in FTSE secondary emerging market
High Commissioner of Malaysia hosts Iftar dinner reception
NEPRA announces 2nd quarterly adjustment in power bills with Rs 1.68 cut per uni ..
Hoopo Inc. Collaborates with SAU to Install Solar-Powered RO Plant
04 killed in Spain as Storm Nelson looms
Russian military jet crashes into sea off Crimea: Governor
Rain-windstorm/thunderstorm likely at various parts of country
More Stories From Business
-
Tractor production increase 68% in Jul-Feb
4 minutes ago -
Exchange rates for currency notes
54 minutes ago -
Foreign exchange rates
1 hour ago -
Currency Rate In Pakistan - Dollar, Euro, Pound, Riyal Rates On 29 March 2024
3 hours ago -
Today Gold Rate in Pakistan 29 March 2024
4 hours ago -
Pakistan retains position in FTSE secondary emerging market
12 hours ago
-
Pakistan retains position in FTSE secondary emerging market
12 hours ago -
China's competitive car market at heart of global EV revolution
13 hours ago -
China's Xiaomi enters car market with new electric vehicle
12 hours ago -
Pak-Türkiye strategize to boost bilateral trade to $5 billion
15 hours ago -
Chief Representative of CFFEX in Pakistan and PSX Director meet Finance Minister
15 hours ago -
Banks to open on March 30, 31 to facilitate tax collection
16 hours ago