News Search
Home | Profiles | Dictionary | TV Channels | Pictures
Home News TV Channels Weather Live Cricket Videos Photos Results Naats
Home Latest News International News Pakistan News Sports News Art & Entertainment Science & Tech Business News
Mobile operators demand tax relaxation     Guterres lauds Pakistan's role at UN     Pakistan Nursing Council withdraws veil ban     Delta apologizes for 'booting' passenger off flight     India launching 'South Asian satellite', Pakistan says no thanks     US lawmakers, Sikhs hail FIBA decision to lift ban on headgear     Trump's religious freedom order may give opponents an unintended boost     Trump's visit to enhance cooperation in fighting extremism: Saudi Arabia     Student arrested for crawling into duct to steal an exam in Kentucky     Afghan forces' cross-border shelling leaves 1 dead, 18 injured: ISPR     
Home >> News >> The Nation

   
Business News
SECP lays down criteria for investment by mutual funds [The Nation] 03 May, 2017

ISLAMABAD - The Securities and Exchange Commission of Pakistan (SECP) has laid down criteria for investment by mutual funds in listed equity securities. The criteria has been finalised to safeguard the interests of unit holders of collective investment schemes while ensuring better risk management by the asset management companies (AMCs).

The mutual fund industry of Pakistan has shown tremendous growth in the recent past. The assets under management of AMCs have increased from Rs546 billion as of June 30, 2016 to Rs694 billion as of March 31, 2017, showing an increase of Rs148 billion or 27% during the first nine months of FY 2016-17. The significant increase in assets under management further necessitates the need for adequate risk management to protect investors.

In this context, an initiative was taken by the SECP wherein efforts have been made to strengthen the risk management framework already in place at AMCs. For this purpose, a detailed in-house study was conducted by the SECP to identify the eligible securities for mutual funds investment.

As a result of the said study and after consultation with the stakeholders, a criteria has been finalised for identification of eligible equity securities for mutual funds investment. According to the criteria, substantial part of the mutual funds investment shall be made in those equity securities that meet the requirements pertaining to free float and minimum number of traded days. AMCs are also required to consider financial strength of the investee company, i.e. net worth, trading status on PSX, and regulatory compliance. Moreover, weightage shall also be given to the observations in respective auditor’s reports.

It is expected that the criteria will minimise the chances of excessive risk being taken by the AMCs and provide a prudent base for investment decisions of the fund managers managing the collective investment schemes.

A copy of the circular containing the above-mentioned criteria has also been placed on the SECP’s website www.secp.gov.pk for information.

 


    
 
More News
 Meltdown on PSX; index plunges 991 points
[Dawn News] 31 Jan, 2017
 Global growth will be disappointing in 2016
[Geo TV] 30 Dec, 2015
 
[SamaaTV] 18 Dec, 2015
 Mideast oil powers Saudi Arabia, UAE to cut gasoline imports
[ARY News] 16 Jun, 2015
Post Your Comments
Type your Comments / Review in the space below.
Name: Email:(Will not be shown) City:
Enter The Code:

Urdu News
a
Pictures Gallery
Cleaning The Kaaba Area - One Of The Best Jobs In The World Cleaning The Kaaba Area - One Of The Best Jobs In The World
Kallar Kahar beautiful Motorway road view, Pakistan Kallar Kahar beautiful Motorway road view, Pakistan
Samzu Water Park Pictures Ticket Price 2015 & Location in Karachi Samzu Water Park Pictures Ticket Price 2015 & Location in Karachi
View all Pictures

 
Home | About Us | Contact Us |  Profiles |  Privacy Policy & Disclaimer | What is Meta News?
Top Searches: Jang News Cricinfo Express Tribune,  , SSC Part 1 Results 2016   Dunya News Bol News Live Samaa News Live Metro 1 News Waqt News Hum TV PTV Sports Live KTN News
Disclaimer: Urduwire.com is only the source of Urdu Meta News (type of Google News) and display news on "as it is" based from leading Urdu news web based sources. If you are a general user or webmaster, and want to know how it works? Please read more!

UrduWire.com - First ever Urdu Meta News portal