ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has made investment in mutual funds easier for small investors by simplifying digital account opening and increasing investment limits for low-risk mutual fund accounts. The reforms are aimed at encouraging broader retail participation and aligning mutual fund investment practices with Pakistan’s evolving digital financial services landscape.
The SECP has issued a circular under which the investment limit for Sehl Accounts has been increased to PKR 1 million from the earlier limit of PKR 200,000, while Sahulat Accounts can now facilitate investments up to PKR 3 million, compared to the previous limit of PKR 1 Million.
Under the new framework, investors maintaining accounts with regulated financial institutions, including banks, microfinance banks, and electronic money institutions, will no longer be required to undergo separate KYC verification for opening Sehl and Sahulat Accounts with Asset Management Companies (AMCs). Since these customers have already been verified by their respective financial institutions, the requirement for repeated verification and resubmission of KYC documents has been removed.
SECP has also streamlined additional due diligence requirements for online account opening in light of improved biometric verification and liveliness check systems, while maintaining the integrity and robustness of the verification process. The integration is expected to reduce duplication, enhance operational efficiency, and facilitate quicker opening of investment accounts with AMCs.
In addition, the previous annual investment caps have been removed, allowing investors greater flexibility to invest and redeem funds without restrictive yearly limits.
The reforms are part of SECP’s broader efforts to make investment in Pakistan’s capital markets simpler and more accessible for the public. SECP Chairman Dr. Kabir Ahmed Sidhu has set a target to increase the number of investors in Pakistan’s capital market to 2.5 million.
The SECP is focusing on simplifying investment procedures, improving digital access, and strengthening enforcement mechanisms to ensure transparency and fair play in the markets.
The initiative is expected to encourage more people to invest in regulated financial products and benefit from dividends, savings, and Pakistan’s economic growth.
