KARACHI: The Securities and Exchange Commission of Pakistan (SECP) has operationalized the Capital Market Development Fund (CMDF), aimed at broadening retail participation and promoting financial literacy in the country’s capital markets.
According to SECP, the fund has been designed to address the immediate developmental needs of the market in line with international best practices. Its primary focus will be enhancing public awareness and equipping small investors with the knowledge to explore capital market opportunities as an alternative to traditional banking channels.
In addition to investor education, the CMDF will also target capacity building for market participants while extending outreach to untapped demographic and geographic segments across Pakistan.
To support the initiative, key market institutions—the Pakistan Stock Exchange (PSX), National Clearing Company of Pakistan Limited (NCCPL), Central Depository Company (CDC), and Pakistan Mercantile Exchange (PMEX)—have pledged a combined PKR 30 million in seed capital. These entities will also contribute one percent of their annual revenues on a recurring basis to fund market development activities.
The Institute of Financial Markets of Pakistan (IFMP) will manage the CMDF under the supervision of a Steering Committee comprising representatives from IFMP, PSX, NCCPL, CDC, and PMEX. The committee will be responsible for governance, oversight, and strategic guidance to ensure effective use of the fund.
Copyright Business Recorder, 2025
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