SECP makes it easier for small investors to access the stock market.

The investment cap for Sahulat Accounts has been raised by the Securities and Exchange Commission of Pakistan (SECP) from Rs 1 million to Rs 3 million, aligning it with the restrictions permitted in the banking industry.

The change is intended to facilitate and increase the accessibility of stock market investing for small, individual investors.

Additionally, SECP has made it possible for investors to open Sahulat Accounts with a variety of licensed securities brokers, giving them more options for brokerage services. However, according to a statement released here on Saturday, investors are only permitted to keep one Sahulat Account with each broker.

The framework is now in line with procedures used in the mutual fund and banking industries.

The Sahulat Account was created to make it easier for small investors to open an account and engage in the stock market. With just their Computerized National Identity Card (CNIC), people can create a brokerage account with a licensed securities broker, greatly lowering the amount of paperwork needed.

The facility is especially appropriate for first-time market participants and low-risk retail investors who might have been deterred by complicated account opening procedures in the past.

Sahulat accounts are currently offered by all authorized securities brokers and may be opened online, giving investors across more accessibility and convenience.

These accounts can be opened by people who have been classified as low risk by the broker’s risk assessment process, with brokers implementing streamlined due diligence procedures.

The total number of individual sub-accounts on the market is 542,748. Roshan Digital Account (RDA) investors are among the 144,634 that fall under the category of Investor Accounts (Individual).

Instead of experimenting with unregulated and unauthorized foreign investment platforms, the Commission will keep proposing additional changes to streamline investment procedures so that young investors can engage in Pakistan’s official capital market with confidence.