July 01, 2008	Tuesday	Jamadi-us-Sani 26, 1429

ISLAMABAD, June 30: The Securities and Exchange Commission of Pakistan (SECP) has allowed associated companies of the fund managers to invest in mutual funds.

The decision, which the commission says, has been taken in the best interest of the capital markers, will bring mutual funds at par with the commercial banks.

According to a SECP notification issued on Monday, the investor companies will now have the option to invest in mutual funds and expect better returns. Previously, such companies were constrained to place the surplus funds with commercial banks, which offer comparatively lower rate of profit.

In another significant decision, the SECP has amended Schedule IV of the Non-Bank Finance Companies (NBFC) and Notified Entities (NE) regulations with an intention to facilitate fund operators to make appropriate disclosure in the annual reports for the benefit of investors.