KARACHI: Pakistan’s securities regulator on Saturday announced an increase in the investment limit for simplified stock trading accounts to attract more small retail investors to the country’s capital markets and make investing easier for first-time participants.
The move comes as authorities seek to deepen participation in Pakistan’s stock market and draw investors away from unregulated foreign investment platforms, while simplifying account opening procedures for individuals who may find traditional brokerage requirements burdensome.
“The Securities and Exchange Commission of Pakistan (SECP) has increased the investment limit for Sahulat Accounts from PKR 1 million [$3,582] to PKR 3 million [$10,745], bringing it in line with limits allowed in the banking sector,” it said in a statement.
The statement added the reform aims to make stock market investment easier and more accessible for small retail investors.
The government introduced Sahulat (or convenience) Accounts to enable small investors to participate in the stock market through a simplified and user-friendly account opening process.
Individuals can open a brokerage account with a licensed securities broker by submitting only their Computerized National Identity Card (CNIC), significantly reducing documentation requirements.
The SECP said investors could open these accounts with multiple licensed securities brokers, giving them flexibility in selecting brokerage services, though only one account may be maintained with each broker.
According to SECP data, there are 542,748 individual sub-accounts in Pakistan’s stock market, including 144,634 investor accounts classified as individual accounts that also include participants investing through the Roshan Digital Account scheme.
The regulator said it would continue introducing reforms aimed at simplifying investment processes and encouraging young investors to participate in Pakistan’s formal capital markets.
