ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has replaced seed capital requirements with minimum fund size of Rs100 million to offer flexibility in launching new mutual funds.
Amending the NBFC and Notified Entities Regulations, 2008, it also enhanced unit-holders’ rights in case of any material change impacting fund’s category and investment objective or other key aspects such as management fee or back-end load.
The SECP said it held detailed consultative sessions, especially with the Mutual Funds Association of Pakistan (MUFAP) and trustees of the mutual funds before making these amendments.
The SECP said the amendments are aimed at strengthening the existing regulatory framework as well as extending operational flexibility to fund managers.
It is an important step forward for a more conducive regulatory framework to fuel growth of the mutual funds industry, claimed the SECP.