KARACHI: Pakistan’s securities regulator said on Thursday it had raised investment limits for low-risk mutual fund accounts and simplified digital onboarding requirements for retail investors, part of a broader push to expand participation in the country’s capital markets.
Pakistan has long struggled with low levels of retail participation in formal investment products, with most household savings traditionally concentrated in bank deposits, real estate and gold. Regulators have increasingly sought to digitize investment platforms and attract small investors through simplified account opening procedures and lower compliance barriers.
The Securities and Exchange Commission of Pakistan (SECP) said the reforms were introduced “to promote financial inclusion, to attract low-ticket investments and to eliminate duplication in customer verification” while ensuring compliance with anti-money laundering regulations.
Under the revised framework, the cumulative investment limit for “Sehl Sarmayakari” accounts, which are simplified low-risk mutual fund accounts designed for small retail investors, has been increased from Rs200,000 ($710) to Rs1 million ($3,560). The maximum amount investors can transact at one time under these accounts was also raised to Rs300,000 ($1,070).
For “Sahulat Sarmayakari” accounts, which are aimed at investors seeking higher investment limits with simplified documentation requirements, the cumulative investment ceiling was increased from Rs800,000 ($2,850) to Rs3 million ($10,700). Transaction limits under these accounts were increased to Rs1 million ($3,560).
The SECP also allowed asset management companies to digitally onboard investors by linking their systems with banks and other regulated financial institutions, allowing existing customer verification data to be reused instead of requiring investors to repeatedly submit separate identity and compliance documents.
“The requirements prescribed under clause 5.2(ii) of the Master Circular for online Sarmayakari Accounts are not applicable in case identity verification has already been conducted through NADRA’s multi-biometric regime, including mandatory facial recognition,” the circular said.
The move effectively removes the need for many existing bank or regulated financial institution customers to repeatedly submit separate know-your-customer (KYC) documentation while opening low-risk mutual fund accounts online.
