SECP raises Sahulat Account limit to Rs3m

Regulator allows investors to open accounts with multiple brokers to widen retail participation in stock market

ISLAMABAD:

The Securities and Exchange Commission of Pakistan (SECP) has increased the investment limit for Sahulat Accounts from Rs1 million to Rs3 million, aligning it with limits allowed in the banking sector in a move aimed at making stock market investment easier and more accessible for small retail investors.

According to a statement issued on Saturday, the SECP has also allowed investors to open Sahulat Accounts with multiple licensed securities brokers, providing greater flexibility in choosing brokerage services. However, investors may maintain only one Sahulat Account with each broker. The reform aligns the framework with practices followed in the banking and mutual fund sectors.

The Sahulat Account was introduced to enable small investors to participate in the stock market through a simplified and user-friendly account opening process.

Under the facility, individuals can open a brokerage account with a licensed securities broker by submitting only their Computerised National Identity Card (CNIC), significantly reducing documentation requirements.

The facility is particularly suited for low-risk retail investors and first-time market participants who may have previously been discouraged by complex account opening procedures.

Currently, all licensed securities brokers offer Sahulat Accounts, which can also be opened online, providing greater convenience and accessibility for investors across the country.

Individuals categorised as low risk through a broker's risk assessment process may open such accounts, with brokers applying simplified due diligence measures. There are 542,748 total individual sub-accounts in the market. Of these, 144,634 are classified as Investor Accounts (Individual), which also include Roshan Digital Account (RDA) investors.