SECP eases corporate account openings

The Securities and Exchange Commission of Pakistan (SECP), in its drive to promote standardisation and uniformity, has issued a circular under the Companies Act, 2017. The circular prescribes a standard format of Board Resolution for the opening of corporate bank accounts by companies.

This reform is one of the initiatives taken by SECP under the theme of its 7th Registrar Conference, "From Paper to Platform." The circular was issued after extensive consultations with the Pakistan Banks' Association (PBA) and other stakeholders.

Previously, the absence of a prescribed format had led to inconsistent documentation, compliance queries, and delays in processing. This was a particular issue for start-ups and companies with foreign directors, often causing delays in FDI.

The introduction of the standardised resolution will address these challenges by ensuring uniformity and speeding up the onboarding of corporate clients by financial institutions. It will also reduce compliance-related queries, while enhancing transparency and security through QR code-enabled digital verification to safeguard against forgery.

With this new format, issues such as diverse documentation requirements and remote verification problems will be resolved. The step will also reinforce regulatory oversight through a secure and reliable documentation framework. It will deliver significant time and cost efficiencies for both companies and financial institutions. The standard Board Resolution, to be submitted electronically, shall be digitally signed and authenticated by an authorised officer. This will enable a shift towards a paperless environment.