Pakistani Residents SECP to launch RDA-type account

Pakistan State Bank (SBP) and Pakistan Securities and Exchange Commission (SECP) are jointly working to launch digital accounts for resident Pakistanis that are similar to that of the Pakistani Roshan Digital Accounting (RDA) to enable citizens, through a trouble-free process, to invest in a wide range of investment options.

Official sources said that Propakistani will be able to quickly create accounts in the Pakistan Stock Exchange and mutual funds with clients of banks and financial institutions, using information that was provided to their banks.

As Pakistan overseas may access stock exchanges and mutual fund via these accounts, the RDAs are a proven success for the SECP and the State Bank of Pakistan (SBP).

Documentation of investors to brokerage businesses and asset management organisations will not be required. In the following several weeks, the facility will probably be disclosed. The information of KYC (Know Your Customers) that are previously provided to banks and branchless operators would enable them to access investment opportunities.

The major goal of this initiative is to increase the broad involvement of investor-based investors in regulated markets in Pakistan at various investment institutions and ultimately to attract investment in them.

The RDAs were particularly introduced in Pakistan last year for Pakistanis from abroad. In conjunction with SECP, Pakistanis from outside have been given an opportunity to participate in the stock market and different bonds, leading to the influx of investments in the instruments supplied.

Digital Onboarding

The Digital Onboarding Mechanism was created by the SECP and was overwhelmed by a growing public interest in participating in asset management instruments.

More than 8,000 accounts were established online till 2020, according to an official. The number of online accounts opened in March in the five months of 2021 was 21,000.

The method provides investors with a smooth account opening for mutual funds investments and eliminates the need to be physically present and provide physical papers.

Asset management enterprises are permitted to carry out an online customer review procedure for the establishment of online accounts and to guarantee that investors preserve and respect all legal and regulatory framework applicable to them.

The method also offers digital verifications of investors and their original identity documents by means of online face-to-face online meeting tools (such as WhatsApp and Skype).

Furthermore, a simpler opening process removes physical signature by investors of many papers and declarations.

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