SECP Operationalizes Capital Market Development Fund

The Securities and Exchange Commission of Pakistan (SECP) has approved the operationalization of the Capital Market Development Fund (CMDF) along with its Terms of Reference (TORs) to address the immediate development needs of the capital market in line with international best practices. The primary objective of the CMDF is to enhance financial literacy and public awareness, equipping retail investors with knowledge about capital market opportunities. This initiative is expected to boost financial inclusion and provide an alternative funding channel to meet the credit needs of the economy. Secondary objectives include capacity building for market participants and expanding outreach to untapped demographic and geographic segments. As part of the initiative, the Pakistan Stock Exchange (PSX), National Clearing Company of Pakistan Limited (NCCPL), Central Depository Company (CDC), and Pakistan Mercantile Exchange (PMEX) will contribute Rs. 30 million as seed capital, along with 1% of their annual revenue, to support market development activities. The Fund will be managed by the Institute of Financial Markets of Pakistan (IFMP) under the supervision of a Steering Committee (SC) comprising representatives from IFMP, PSX, NCCPL, CDC, and PMEX. The SC will provide governance, oversight, and strategic direction for all CMDF activities. The Fund was officially launched during a consultative workshop titled “Unlocking Capital Market Potential for Banks” by the Honourable Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, on August 18, 2025.