The Securities and Exchange Commission of Pakistan (SECP) has permitted Asset Management Companies (AMCs) to open Sehl Sarmayakari accounts directly for residents through their own digital platforms or physical forms.
In the past, only branchless banking agents, electronic money institution (EMIs) or scheduled banks opened low-risk investment accounts.
Under the new due diligence process, AMCs will control customer onboarding, verification, and guarantee compliance with the investment and transaction limits for Sehl Accounts.
After the completion of documentation requirements and additional information, investors can upgrade to Sahulat Sarmayakari or Sarmayakari Account. Once upgraded, investments beyond the limits of Sehl Accounts can be made.
This system is expected to allow AMCs to onboard low-risk customers through Know Your Customer (KYC) processes. It is also aimed at encouraging micro-savings and higher financial participation in the capital markets of Pakistan.
With a simple and time-efficient onboarding process, the Sehl Account will cater to low-income divisions and allow customers to invest savings into mutual funds.
SECP promotes capital raising
Earlier this week, SECP had notified amendments to the Companies Regulations, 2020 to support capital raising by listed companies. Disclosure requirements for investors were also sustained.
A press release issued by the Commission revealed that the amendments highlighted a problem that listed companies faced while raising more capital from existing shareholders.
In the past, listed companies were not permitted to announce a rights issue in the case a company, its sponsors, shareholders, promoters or directors had any amounts overdue or if defaults showed up in their Credit Information Bureau (CIB) report.
SECP relied on feedback from stakeholders in the market, professional institutions, law firms, issue consultants and capital market bodies for the notification of the amendments.
The Commission hoped that the amendments will promote market confidence, make capital more accessible for listed companies.
