SECP Launches Capital Market Development Fund to Boost Investor Awareness

August 20, 2025 – 04:27 PM

The Securities and Exchange Commission of Pakistan (SECP) has officially operationalized the Capital Market Development Fund (CMDF) along with its Terms of Reference (TORs), aiming to strengthen the capital market in line with international best practices.

The CMDF’s core objective is to enhance financial literacy and investor awareness, equipping retail investors with the knowledge and confidence to participate in capital market opportunities. This step is expected to deepen financial inclusion and provide an alternative funding channel to support Pakistan’s economic credit needs.

In addition, the Fund will focus on capacity building of market participants and expanding outreach to underrepresented demographic and geographic segments.

To support its activities, PSX, NCCPL, CDC, and PMEX will jointly contribute Rs30 million as seed capital, along with 1% of their annual revenues each year. The Fund will be managed by the Institute of Financial Markets of Pakistan (IFMP) under the guidance of a Steering Committee comprising representatives from PSX, NCCPL, CDC, PMEX, and IFMP.

The Fund was formally launched during a consultative workshop titled “Unlocking Capital Market Potential for Banks”, graced by Federal Finance Minister Senator Muhammad Aurangzeb on August 18, 2025.

The initiative reflects SECP’s continued commitment to fostering a vibrant, inclusive, and well-regulated capital market ecosystem in Pakistan.