The Securities and Exchange Commission of Pakistan (SECP) has met with asset management companies and key market infrastructure bodies to progress initiatives aimed at improving cost efficiency and transparency in the mutual funds industry and increasing liquidity in exchange-traded funds (ETFs). The discussions focused on operational reforms for mutual funds, alongside measures to address practical constraints limiting ETF market growth. On mutual funds, participants explored outsourcing selected functions to specialized service providers, with an emphasis on reducing costs, standardising user experience, and enhancing transparency in functions such as net asset value (NAV) calculation, including through fintech-enabled solutions. A working group comprising the SECP, market participants, trustees, and fintech companies will review the proposal, assess the impact of technological evolution including blockchain, and recommend a way forward within 60 days. For ETFs, an SECP-led committee including the Pakistan Stock Exchange, the Central Depository Company of Pakistan, NCCPL, and stock brokers has finalised proposals to tackle issues such as large lot sizes and inefficient distribution, and is expected to submit its report shortly.
Securites & Exchange Commission of Pakistan 2025-10-24
Securities and Exchange Commission of Pakistan forms working group on mutual fund outsourcing and advances proposals to boost ETF liquidity
The Securities and Exchange Commission of Pakistan (SECP) is advancing initiatives to enhance cost efficiency and transparency in mutual funds and boost liquidity in exchange-traded funds (ETFs). Discussions with asset management companies and market infrastructure bodies focused on operational reforms, including outsourcing functions, leveraging fintech solutions for mutual funds, and addressing constraints in the ETF market. A working group and an SECP-led committee are reviewing proposals and finalizing reports on these initiatives.