The Securities and Exchange Commission of Pakistan (SECP) is considering important adjustments with the aim of making private funds more accessible and participative in the investment landscape. Individual investors—including those living abroad—would for the first time be allowed to invest in private funds, which will greatly energize and capitalize the market.
Up until now, only specific institutions were deemed to be “eligible investors.” In its latest consultation paper, the SECP has proposed expanding those criteria. The revised policies will expand eligibility to include earners with regular incomes, thereby relaxing financial entry barriers and shifting access beyond just the ultra wealthy.
The other important focus is on the Shariah compliant investment funds which are gaining traction among Pakistani investors. The SECP is keen to revise the guidelines to better the alignment with Islamic finance principles, which makes the funds more attractive and credible to the Shariah compliant investors.
SECP has been holding public consultations in Islamabad, Lahore, and Karachi to capture the needs of the market for these changes. These public discussions brought together fund managers, legal practitioners, international donor agencies and other relevant stakeholders to debate the policy changes. The approach is intended to enhance transparency and collaboration in the process.
