Clarification on Investment in Units of Exchange Traded Funds out of Provident Fund

-

Securities and Exchange Commission of Pakistan on 17 June 2021 issued Circular 17 of 2021 in order to allow that investment made by a company out of provident fund or any other employee contributory retirement fund can me made in Exchange Traded Fund (ETF) being the open-end collective investment scheme (CIS) registered as notified entities with the commission. The investment will be subject to following limited and conditions of Employees Contributory Funds (Investment in Listed Securities) Regulations, 2018.

Limits for investment in Listed Securities

Regulation Reference

Description

Maximum Limited *

3(1)(a)

Total investment in Debt CIS including Debt ETF

50%

3(1)(c)

Total investment in equity CIS including equity ETF

30%

3(8)

Total investment in Debt CIS including Debt ETF managed by a single asset management company

50% of 3(1)(a)

3(9)

Total investment in any single equity CIS including equity ETF

50% of 3(1)(c)

* As a percentage of the size of the Fund or Trust, as the case may be at the time of making investment.






Conditions for investment in Listed Securities

Regulation Reference

Description

Conditions

4(c)

Investment in debt CIS including Debt ETF which have been assigned

“A” stability rating

4(f)

Total investment in hybrid CIS including hybrid ETF

3(1)(c)




Please click here for further reading.


Comments

Post a Comment

Popular posts from this blog

Removal of JamaPunji Message

-
Image
Securities and Exchange Commission of Pakistan (“SECP”) through SRO 346(I)/2020 dated 29 April 2020 has withdrawn it earlier directive issued under SRO 924 (I)/2015 on 9 September 2015. SECP, in SRO 924 (I)/2015 , instructed all the companies listed on Pakistan Stock exchange to include a message on “JamaPunji" in annual accounts and balance sheet. Now, listed companies don’t have to publish this message in annual report.  JamaPunji Ad JamaPunji is an initiative of SECP to provide fundamental knowledge and understanding of financial markets to general public and enhance financial literacy in the country.
Read more

SRO 78 (I)/2021 The Inland Revenue Reward Rules

-
Image
Federal Board of Revenue (FBR) issued SRO 78(I)/2021 on 22 January 2021 to introduce the Inland Revenue Reward Rules, 2021. The purpose was to consolidate rewards rules already issued from time to time and make a robust system of incentives to motivate officers of Inland Revenue for enhancing their performance.   The rules also provide incentives to whistle blower and informants not belonging to the office Inland Revenue. Snapshot Reference No. SRO 78 (I)/202 1 Description The Inland Revenue Reward Rules, 2021 Date of Issuance 22 January 20 21 Amendment Consolidation of the Reward Rules, 1980 dated 29 March 1988, The Sales Tax Reward Order dated 30 November 1998, The Unified Reward Rules, 2006 dated 05 December 2006 and SRO 398(I)/2016 dated 05 May, 2016 Objective To consolidate exiting reward rules and introduce a robust reward system for officials and staff ...
Read more

Constitution of Alternate Dispute Resolution Committee (ADRCs)

-
Federal Board of Revenue (the Board) issued SRO 101(I)/2021 on 28 January 2021 to notify the names of 6 more persons for the panels for Alternate Dispute Resolution Committee (ADRCs) in Multan, Islamabad and Karachi. These six person are in addition to already notified vide SRO 810 (I)/2020 by FBR. Snapshot Reference No. SRO 101 (I)/202 1 Description Constitution of Alternate Dispute Resolution Committee Date of Issuance 28 January 20 21 Objective To increase number of persons on the panel of Alternate Dispute Resolution Committee Effective date Immediate  
Read more