Pakistan Stock Exchange (PSX) has inducted three mutual funds managed by Meezan as trading participants for proprietary trading in Government of Pakistan (GoP) Sukuk, following regulatory approval that expands the participation of eligible commercial banks and mutual funds in the Sukuk trading mechanism. The development follows approval from the Securities and Exchange Commission of Pakistan (SECP), which allows commercial banks and mutual funds that are Debt Market Clearing Members (DMCMs) of the National Clearing Company of Pakistan Limited (NCCPL) to act as trading participants for proprietary trading in GoP Sukuk.
The three funds inducted by PSX are CDC Trustee Meezan Islamic Asaan Cash Fund, CDC Trustee Meezan Daily Income Fund Meezan Munafa Plan-I, and CDC Trustee Meezan Government Securities Fund Meezan Government Securities Plan-I. Their induction came after the respective institutions submitted applications and completed the required documentary, operational and technical requirements. PSX said the inclusion of the funds was carried out following completion of the necessary requirements under the mechanism approved for proprietary trading in Government of Pakistan Sukuk.
Under the approved arrangement, the inducted mutual funds will be permitted to trade in GoP Sukuk issued through primary market auctions conducted at PSX. However, the permission is specifically limited to trading for their proprietary accounts. This means the participating funds will be able to undertake eligible Sukuk transactions for their own accounts under the framework, rather than receiving a broader mandate to trade across the entire fixed income market.
The mechanism also places clear restrictions on the securities that the newly inducted trading participants can trade. While the funds are eligible to participate in trading of GoP Sukuk issued through primary market auctions at PSX, they will not be permitted to trade in other fixed income securities available through the Bills and Bonds (BnB) market. This restriction covers both Corporate Debt Securities and Government Debt Securities other than the specified GoP Sukuk covered under the approved arrangement.
The development follows a regulatory decision by SECP to allow eligible commercial banks and mutual funds with DMCM status at NCCPL to participate as trading participants for proprietary trading in Government of Pakistan Sukuk. The framework provides an avenue for qualifying institutions to participate directly within the specified Sukuk trading mechanism, subject to the applicable operational, technical and documentary requirements.
PSX’s induction of the three Meezan-managed funds therefore marks their formal entry into the designated trading participant structure for GoP Sukuk proprietary trading. The funds will operate within the boundaries established by the approved mechanism, including the requirement that eligible transactions be undertaken for their proprietary accounts and the restriction against trading other fixed income securities available in the BnB market.
The inclusion of the three funds also reflects the completion of the required institutional arrangements following their applications to participate. CDC Trustee Meezan Islamic Asaan Cash Fund, CDC Trustee Meezan Daily Income Fund Meezan Munafa Plan-I and CDC Trustee Meezan Government Securities Fund Meezan Government Securities Plan-I have now been inducted as trading participants after fulfilling the documentary, operational and technical conditions set by the relevant market infrastructure and regulatory framework.
According to the PSX notice, the newly inducted participants will be able to trade GoP Sukuk issued through primary market auctions at the exchange for their proprietary accounts only. Their trading authority does not extend to other fixed income securities listed or available through the Bills and Bonds market, maintaining the specific scope of the permission granted under the regulatory mechanism.
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