Investing in the Pakistan Stock Exchange is set to become faster and more convenient after the Securities and Exchange Commission of Pakistan (SECP) introduced a new digital onboarding framework for stock market investors.
The new system aims to simplify the account-opening process, reduce delays and make digital investment services more accessible to people across Pakistan.
Under the framework, investors will be able to open a convenience account within one day, while regular investor account applications will receive a decision within two days.
The SECP said the reforms are designed to improve the overall investor experience by using technology to streamline onboarding and reduce unnecessary delays.
24/7 digital account processing
One of the key features of the new framework is round-the-clock digital processing.
Investors will be able to access the account-opening process 24 hours a day, seven days a week, allowing them to submit applications without being restricted by traditional office timings.
Applicants will also receive a tracking ID through which they can monitor the progress of their account-opening applications.
The tracking facility is expected to provide greater transparency and allow investors to know the status of their requests without having to repeatedly contact brokers or relevant institutions.
Brokers required to explain rejected applications
The SECP has also introduced measures aimed at making the account-opening process more transparent.
Under the new requirements, brokers will have to provide written reasons when rejecting an application for a stock market account.
The requirement is intended to give prospective investors a clear explanation of why their applications were not accepted and reduce uncertainty during the onboarding process.
The regulator has also said that investors who have already completed the required verification will not have to undergo the same verification process again.
This measure is expected to reduce paperwork and make the process more efficient for existing verified investors.
SECP targets 2.5 million investors
The digital onboarding reforms are part of the SECP’s broader efforts to increase participation in Pakistan’s capital market.
The regulator has set a target of increasing the number of stock market investors to 2.5 million.
Young people are among the key groups the SECP wants to attract to the capital market, with technology expected to play an important role in making investment more accessible to younger and digitally connected investors.
SECP Chairman Kabir Ahmed Sidhu said the commission wants to make stock market investment easier through technology and encourage greater participation among young people.
Technology to expand investor participation
Sidhu highlighted the significant growth potential of Pakistan’s capital market and said technology could help remove some of the barriers that discourage people from investing.
For first-time investors, complicated paperwork and lengthy account-opening procedures can create difficulties. The new digital framework is aimed at addressing these issues by making onboarding quicker and more accessible.
The ability to complete the process digitally at any time could also make it easier for people outside major financial centres to enter the stock market.
Faster access to Pakistan Stock Exchange
The new framework is expected to make the process of opening investor accounts more efficient while improving transparency between investors and brokers.
With faster processing times, application tracking, written explanations for rejected applications and 24/7 digital access, the SECP hopes to create a more investor-friendly system.
The reforms are focused on improving the initial onboarding stage and are part of the regulator’s wider efforts to broaden Pakistan’s investor base.
If successfully implemented, the new system could encourage more Pakistanis, particularly younger investors, to explore opportunities in the Pakistan Stock Exchange.
