Securities and Exchange Commission of Pakistan (SECP) on Thursday allowed Pakistani residents and non-resident investors to open online account in the capital market.
A statement issued by the SECP stated that this new regime is part of the SECP’s digital transformation agenda, allows investors to seamlessly open his or her account with a broker from anywhere in the country without requiring to submit any documents physically or visit a broker. “The new hassle-free process shall enable investors to commence trading swiftly.”
However, to ensure maximum investor protection, an alternate online customer verification process has been introduced for opening of online account.
“The online verification will be conducted independently by the Centralized KYC Organization. In addition, the account opening process has been made simpler by reducing the number of pages to be signed by the investors.”
The new account opening system is a continuation of SECP’s reform agenda that aims at enhancing investor outreach, introducing digitization and ensure robust growth of the capital markets.
A sizeable investor base is a crucial stepping stone for development of any capital market and is therefore part of the major objectives of the SECP.
“It is expected that the new regime would revolutionize Pakistan’s capital market and contribute significantly towards economic growth in the country by channeling investment and savings through the market,” the SECP said.