SECP Launches Capital Market Development Fund to Boost Retail Investment

The Securities and Exchange Commission of Pakistan (SECP) has officially launched the Capital Market Development Fund (CMDF). This initiative is designed to broaden participation from retail investors and enhance financial literacy within Pakistan’s capital markets.

SECP stated that the fund is structured to fulfill the market’s immediate growth requirements, adhering to global standards. The main goal is to increase public knowledge and give small investors the understanding needed to utilize capital market prospects as alternatives to standard banking methods.

The CMDF will also emphasize building the capabilities of market participants and expanding its reach to previously untapped demographic and geographic areas throughout Pakistan, in addition to educating investors.

Key market players, including the Pakistan Stock Exchange (PSX), National Clearing Company of Pakistan Limited (NCCPL), Central Depository Company (CDC), and Pakistan Mercantile Exchange (PMEX), have committed a total of PKR 30 million in initial capital to back this project. Furthermore, these organizations will donate one percent of their yearly income regularly to support activities aimed at market development.

The Institute of Financial Markets of Pakistan (IFMP) will oversee the CMDF, under the direction of a Steering Committee made up of representatives from IFMP, PSX, NCCPL, CDC, and PMEX. The committee’s duties will include governance, supervision, and offering strategic advice to guarantee the fund is used efficiently.