The eligible investors in Private Funds will now also include individual and foreign investors.
The Securities and Exchange Commission of Pakistan (SECP) has issued a consultation paper on Private Funds and initiated an impact analysis to assess the efficacy of the Private Fund Regulations, 2015, in catering to the rapidly evolving private fund landscape in the country.
Given the growing preference for Shariah-compliant private funds, the regulations are also being reviewed to ensure stronger linkage and adherence to Shariah principles, in line with the Shariah governance regulatory framework recently notified by the SECP.
According to the new paper, the term “Eligible Investor” is proposed to be expanded to include both local and foreign individual investors, with relaxed financial resource requirements and the introduction of the term “Qualified Institutional Buyer.”
The classification of eligible investors into Individuals and Qualified Institutional Buyers is being defined separately, as the current regulations only recognize individuals. Additionally, eligibility criteria have been eased through the inclusion of a net income requirement, enabling broader participation in Private Funds and supporting market growth.
As part of its inclusive and transparent legislative process, the SECP held stakeholder consultation sessions in Islamabad, Lahore, and Karachi. The sessions brought together industry representatives, fund managers, multilateral donor agencies, legal advisors, and other stakeholders, aiming to raise awareness about proposed revisions to the Private Fund Regulations, 2015.
They also served as a platform for discussion and collaboration between the regulator and the industry. The first session was held in Islamabad on July 30, followed by Lahore on August 18 and Karachi on August 27, 2025.
The sessions were preceded by the SECP’s publication of a Consultation Paper in July 2025, drafted after initial feedback from the industry. The paper outlines proposed amendments to the Private Fund Regulations, offering a more structured and globally aligned framework for regulating private equity and venture capital funds. The proposed changes include clearly defined subtypes of private funds, expanded investor eligibility, and enhanced governance.
