Investment policy for pension funds revised: Maturity period for government Ijarah Sukuk fixed at five years

The Securities and Exchange Commission of Pakistan (SECP) has revised investment policy for pension funds, according to which the time of maturity of any government Ijarah Sukuk shall not exceed five years in case of Shariah-compliant money market sub-fund.

The SECP has issued circular number 14 of 2020 for amendments to the investment policy for pension funds authorised under voluntary pension system rules Thursday.

According to the SECP, the commission in exercise of the powers conferred under Section 282B(3) of the Companies Ordinance, 1984 read with sub-rule (3) and (4) of rules 24 of the Voluntary Pension Rules, 2005, make the following amendment in the investment policy specified through Circular 36 of 2009 dated December 10, 2009 and Circular No 36 of 2012 dated November 26, 2012.

In case of Shariah-compliant money market sub-fund the time to maturity of any government Ijarah Sukuk shall not exceed five years.

All other terms and conditions shall remain unchanged, the SECP added.

The SECP's circular 36 of 2009 deals with the investment and allocation policies for pension funds authorised under voluntary pension system rules.