The Securities and Exchange Commission of Pakistan (SECP) on Wednesday conveyed to funds/trusts that a minimum rating of "A-" is required under Employees Contributory Funds (Investment in Listed Securities) Regulations, 2018 for making investment in Islamic listed debt securities.
The SECP has issued SRO 998 (I)/2019 draft amendment to the Employees Contributory Funds (Investment in Listed Securities) Regulations, 2018 here on Wednesday.
In this regard, the SECP has revised conditions for investment in listed securities where the Fund or Trust decides to make investment in bonds, redeemable capital, debt securities or instruments issued by a statutory body.
According to the SECP's draft amendment, where investment is made in Islamic listed debt securities, a minimum rating of "A-" shall be allowed. Provided further that the Commission may, through notification, change the minimum rating of a security assigned in this clause, the SECP added.
Under the existing Employees Contributory Funds (Investment in Listed Securities) Regulations, 2018, where investment is made in bonds, redeemable capital, debt securities or instruments issued by a statutory body or listed debt securities of a company such securities shall be assigned a minimum rating of "A" by a credit rating company licensed with the Commission and with at least a stable outlook at the time of investment. Provided that the Commission may, from time to time, change the minimum rating of a security assigned in this clause.
This is one of the conditions for investment in listed securities where the Fund or Trust decides to make investment in bonds, redeemable capital, debt securities or instruments issued by a statutory body.