Pakistan’s securities regulator, on Saturday announced an increase in the investment limit for simplified stock trading accounts, aiming to attract more small retail investors to the country’s capital markets and facilitate easier investing for first-time participants.
This initiative is part of the authorities’ efforts to enhance participation in Pakistan’s stock market and redirect investors from unregulated foreign investment platforms, while also streamlining the account opening process for individuals who may find traditional brokerage requirements to be cumbersome.
In a statement, the Securities and Exchange Commission of Pakistan (SECP) declared that the investment limit for Sahulat Accounts has been raised from PKR 1 million [$3,582] to PKR 3 million [$10,745], aligning it with the limits permitted in the banking sector.
The statement further noted that this reform is designed to simplify stock market investment, making it more accessible for small retail investors.
The government established Sahulat (or convenience) Accounts to allow small investors to engage in the stock market through a straightforward and user-friendly account opening process.
Individuals can establish a brokerage account with a licensed securities broker by merely providing their Computerised National Identity Card (CNIC), which significantly lessens the documentation requirements.
As per SECP data, there are 542,748 individual sub-accounts in Pakistan’s stock market, which includes 144,634 investor accounts categorised as individual accounts, also encompassing participants investing through the Roshan Digital Account scheme.
Pakistan stock market crashes
Earlier at the beginning of March, investors lost millions as the Pakistan stock market crashed soon after opening.
Heavy selling hit the Pakistan Stock Exchange amid rising regional tensions. Panic gripped traders from the first minute.
The benchmark KSE-100 Index fell below 153,000 points in early trade. By 9:22am, it stood at 152,991, down by more than 15,000 points. That marked a sharp fall of nearly 9 percent.
Read more: Investors lose millions as Pakistan stock market crashes
