SECP allows Asset Management Companies to invest in GoP Ijarah Sukuk

ISLAMABAD: Taking a major decision to promote Pakistan’s capital market, the Securities and Exchange Commission of Pakistan (SECP) has allowed Asset Management Companies (AMCs) to invest in the GoP Ijarah Sukuk (GIS) listed and traded through Pakistan Stock Exchange (PSX).

In this regard, the SECP has issued a circular number 36 of 2025 on Friday to the Chief Executive Officers, Asset Management Companies, Mutual Funds Association of Pakistan and Trustees of Collective Investment Schemes (CIS).

The circular is related to the Categorization of Open-End CIS.

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The SECP’s directive revealed that this circular has been issued in supersession of Direction No 17 of 2023 dated December 06, 2023 and Direction No 22 of 2024 dated December 06, 2024 regarding the Categorization of open-end CIS.

In order to enhance and promote the capital markets and ensure wider participation of mutual funds in one-year GIS, the SECP (the Commission), in exercise of its powers conferred under section 282B(3) of the Companies Ordinance 1984 read with Regulation 55(2) of the Non-Banking Finance Companies and Notified Entities Regulations, 2008 (the Regulations), hereby, allows the Asset Management Companies on behalf of Money Market Schemes to invest in GIS listed and traded through PSX with a maturity exceeding six months and up to one year subject to following conditions:

(i); Requirement for weighted average time to maturity of the net assets including government securities shall remain as “not exceed 90 days”.

(ii); The respective monthly fund manager report shall include the disclosure of the actual exposure or investment in one-year GIS, calculated as a percentage of Net Assets.

(iii); All the other conditions applicable on money market schemes including the risk profile through the prevalent Regulations, Circulars and Directions shall remain intact, SECP added.

Copyright Business Recorder, 2025