The Securities and Exchange Commission of Pakistan, in a notification issued today, has increased the investment limit in the stock market through Sahulat accounts from Rs 1 million to Rs 3 million. Increasing this investment limit will make it easier for small retail investors to invest in the stock market.
This adjustment aligns the cap with similar limits within the banking sector and is intended to enhance accessibility to the stock market for retail savers, according to the regulator.
In a parallel reform, the Commission has granted investors the flexibility to open Sahulat Accounts with multiple licenced securities brokers. The new regulation stipulates that an individual can hold only one such account per brokerage firm, a practice consistent with the banking and mutual fund industries.
The Sahulat Account was initially established to streamline market entry for novice investors. The account opening procedure requires minimal documentation, with individuals only needing to provide their Computerised National Identity Card (CNIC) to a licenced securities brokerage.
This facility is designed for individuals identified as low-risk, including first-time market participants. All licenced securities brokers currently offer the Sahulat Account, which is available for online registration, thereby increasing convenience for prospective investors nationwide. Brokers are permitted to apply simplified due diligence for applicants classified as low-risk.
Official figures indicate the market currently has 542,748 individual sub-accounts. Within this total, 144,634 are designated as Investor Accounts, a category that also encompasses Roshan Digital Account (RDA) holders.
The SECP has stated its commitment to implementing further reforms aimed at simplifying investment procedures. The regulator”s stated goal is to encourage greater participation from young investors in the formal capital market and steer them away from unregulated foreign investment platforms.