Karim Madad

ISLAMABAD, July 18, (INP-WealthPK): The Securities and Exchange Commission of Pakistan (SECP) has allowed insurance companies to invest in open-ended mutual funds to encourage their participation in the Exchange Traded Fund (ETF) market, WealthPK reports.

According to a statement issued by the SECP, after the new amendments to the Insurance Rules, 2017, insurance companies have been allowed to invest 10 percent of their total investments in any open-ended mutual fund including units of ETF.

If insurance companies choose to invest in a mutual fund and ETF, managed by the same Asset Management Company (AMC), they may invest a maximum of up to 15 percent of their total investment.

If the insurance companies already have investments with an AMC, they may also invest an additional five percent of their total investments in ETFs offered by that AMC.

The participation of insurance companies in the capital market, as institutional investors, will strengthen Pakistan’s capital market, according to the statement, available with WealthPK.

Credits: INP-WealthPk