The Securities and Exchange Commission of Pakistan is planning to introduce a centralized digital mutual fund distribution platform where the SECP will act as an intermediate entity between the Asset Management Companies and the investors. Regarding the SECP’s future plan of digital mutual fund distribution, the commission has issued some details regarding the future concepts and projects under consideration.
The digital mutual fund distribution platform
The SECP said that through the digital mutual fund distribution platform the AMCs will have access to the individual customers in remote areas and an online dashboard will enable customers to onboard the platform through an online sign-up using their email account (Gmail/Yahoo/Outlook) and complete the process. The dashboard can be utilized to make the redemption requests and YPay will forward the requests to the concerned AMC.
As per SECP, the customers can browse through a list of conventional or Islamic investment opportunities by reading m their summaries and market profiles and making their investment decision. Next, the application commissioner will receive the request and confirm the status of the investment once the background process has been completed. SECP notified that upon successful redemption, the funds will be transferred to the customer’s linked bank account and they will be via an email notification.
Pakistan National Investor Portal
The Securities and Exchange Commission of Pakistan has also launched a new Pakistan National Investor Portal (PNIP) which is a digital ecosystem to provide opportunities to the potential companies that intend to raise funds through crowdfunding. The PNIP has also called for applications from potential companies that wanted to raise funds through crowdfunding.
According to the details of the new projects issued by the SECP, the portal will identify the risks involved in equity crowdfunding, so that a regulatory framework addressing the concerning risks can be introduced and also identify the optimal approach for regulating equity crowdfunding.