SECP unveils updated Master Circular, raises investment limits

July 28, 2026 (MLN): The Securities and Exchange Commission of Pakistan (SECP) has issued an updated Master Circular for Asset Management Companies (AMCs) and Investment Advisers (IAs), consolidating all mutual fund and investment advisory regulations issued between January 6, 2009 and June 30, 2026 into a single reference document.

SECP has increased the investment limit for low-risk investors using simplified digital accounts. Sehl Sarmayakari accounts, limited to money market and low-risk income schemes, now carry a cumulative investment limit of Rs1m and a transaction limit of Rs300,000, while Sahulat Sarmayakari accounts carry a cumulative limit of Rs3m and a transaction limit of Rs1m.

The Circular defines the framework for digital onboarding of investors through regulated financial institutions, including OTP-verified portal access, real-time video verification, NADRA biometric checks, and enhanced due diligence for high-risk customers.

It also includes SECP regulations relating to Infrastructure Funds, ESG Funds, Digital Asset Management Companies, and Investment Plans. Infrastructure schemes must invest in sectors such as transport, energy, water and social infrastructure while maintaining minimum net assets of Rs100m.

ESG schemes must keep at least 50% of assets aligned with a declared ESG strategy such as negative screening, integration or impact investing. Digital AMCs seeking NOCs from trustees must meet OWASP-aligned cybersecurity requirements, while each Investment Plan is required to carry a separate Key Fact Statement and maintain segregated assets.

The Master Circular also covers regulations relating to the categorisation of Collective Investment Schemes (CIS) and investment avenues, disclosure requirements, Constant Proportion Portfolio Insurance (CPPI)-based schemes, Exchange Traded Funds (ETFs), performance benchmarks for Collective Investment Schemes, the selling and marketing of mutual funds, sales loads and expenses, valuation and provisioning, distribution of CIS units, outsourcing arrangements, risk management and compliance, mergers of open-end schemes, procedures for unit holders' meetings, separately managed accounts and closed-end schemes.

SECP has also clarified requirements for Key Fact Statements, Trust Deed formats, and Market Development Fund regulations, and issued guidelines on digitalisation, advertisements, risk management, and mandatory certification of Non-Banking Finance Company (NBFC) professionals under the Pakistan Markets and Regulations Program, Fundamentals of Capital Market, and Mutual Fund Distributors Certification.

According to the SECP, in case of any conflict between the Master Circular and the relevant circular, the original circular shall prevail.

The updated Master Circular is attached.

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