The Securities and Exchange Commission of Pakistan (SECP) has decided to set up a central digital mutual fund distribution platform to act as an intermediary between the Asset Management Companies and the investors who want to buy their funds.
People who work for the SECP have talked about the new ideas and projects that the commission is thinking about in the future.
It was through this platform that the AMCs were able to reach people in remote areas and meet the needs of people who were small savers. Methodology An online dashboard lets customers sign up for the service through their email account (Gmail, Yahoo, or Outlook) and finish the process.
After the customer completes their KYC and links their bank account, the platform creates a risk profile based on information about the customer’s risk appetite. A list of investment opportunities (conventional or Islamic) is available for customers to look at. They can read about the summaries and market profiles of the possibilities, and then decide which one to invest in.
Request: The Application Commissioner gets the request and confirms the investment status after the background process is done. Requests for refunds can be made through the dashboard at any time. As soon as the customer’s request is approved by the AMC, YPay will send the request to that AMC. When the customer’s request is approved, the funds will be transferred to their linked bank account, and they will be notified by email, the SECP said.
The Pakistan National Investor Portal (PNIP) has also been created by the SECP to help businesses that want to raise money through crowdfunding. The Portal will figure out the risks of equity crowdfunding so that a regulatory framework can be put in place to deal with those risks. It will also figure out the best way to regulate equity crowdfunding.
It was the PNIP who called to see if any businesses wanted to raise money through crowdfunding. More companies were cut down based on the due diligence criteria set by PNIP. After being shortlisted, companies went through an investment readiness program, where they learned how to talk about the issue with people who could invest. Next, the platform was made available to people who were ready to invest, after the investment readiness program.
The platform could then connect people who want to invest with businesses that need money. All subscriptions had to be made through banking channels and put in an escrow account. This is how it worked: Companies that might be good candidates for crowdfunding were identified or shortlisted by Performance PNIP. However, because of time constraints, the crowdfunding platform was difficult to market, and investors had to be identified and registered. The companies couldn’t be shown to investors, the SECP said in its report. Identify the risks of equity crowdfunding so that a regulatory framework can be put in place to deal with the dangers and also figure out the best way to regulate equity crowdfunding.