KARACHI: After allowing non-resident to open Roshan Digital Accounts in any Pakistani Bank, the Securities and Exchange Commission of Pakistan (SECP) has also given permission to local brokers to open online accounts of Pakistanis living in far-flung areas or abroad.
The stock exchange brokers at the platform of Pakistan Stock Brokers Association (PSBA) hailed this decision of the SECP and its Commissioners to approve the framework for online digital onboarding of investors.
“The final authority, for allowing ‘Online Account’ with the brokers, would be National Clearing Company Pakistan Limited (NCCPL), who will give final permission after verification of the documents of resident or non-resident Pakistanis without appearing in person or thumb expressions. The brokers will receive the ‘Online Forms’ from their clients but have to get permission from the NCCPL who will generate the final ‘Pin Code’ etc. of the customers.
Earlier, the brokers were not allowed to open account without personal appearance or thumb impression of the clients. After this permission to open digital account with the capital market, people can easily approach the brokers through their mobile or computers from far-flung areas or even outside the country.
According to the SECP’s notification, “the new regime, that is part of SECP’s digital transformation agenda, allows investors to seamlessly open his or her account with a broker from anywhere in the country without requiring to submit any documents physically or visit a broker. The new hassle-free process shall enable investors to commence trading swiftly.”
In this connection, however, to ensure maximum investor protection, an alternate online Customer Verification process has been introduced for opening of online accounts. The online verification will be conducted independently by the Centralized KYC Organization. In addition, the account opening process has been made simpler by reducing the number of pages to be signed by the investors, the SECP said.
It is a continuation of SECP’s reform agenda that aims at enhancing investor outreach, introducing digitization and ensures robust growth of the capital markets.
“It is expected that the new regime would revolutionize Pakistan’s capital markets and contribute significantly towards economic growth in the country by channelling investments and savings through the market,” said Bilal Farooqui, Secretary General of Pakistan Stock Brokers Association (PSBA) said.
The PSBA official said it was our outstanding demand to enable all resident and non-resident investors to open an online account in the Capital Market of Pakistan.
On behalf of the stock brokers/TREC Holders of Pakistan Stock Exchange, the PSBA thanked the SECP for helping in such matters for the growth of the industry. The PSBA also thanked to other capital market entities involved in this project.
Former President PSBA, Basharat told The Correspondent that the decision of the SECP is in right direction which will enhance the activities of PSX in local and foreign markets and the brokers would be able to initiate paperless accounts opening like Roshan Digital Accounts in Pakistan.
Ex-General Manager PSX, Sani Mehmood said that it was a long-standing demand of the PSX brokers to allow foreign accounts but the SECP was not allowing it. After the decision of State Bank of Pakistan to give permission to banks to open non-residents account, the SECP has to allow it.