Pakistan, April 17 -- The Securities and Exchange Commission of Pakistan (SECP) has proposed a new system called swing pricing to make mutual fund investing fairer for all investors.

In this regard, SECP has issued a consultation paper and invited comments from all stakeholders before finalizing the proposal, said a press release issued by the SECP here on Thursday. The concept is based on the fact that during sudden market changes, such as economic or political events, many investors may withdraw funds, make new investments, or switch their investment options at the same time. This increased activity forces mutual fund managers to quickly buy or sell assets, leading to additional costs such as brokerage and transaction charges. At prese...