In an attempt to increase the number of retail investors in the stock market, Pakistan Stock Exchange (PSX) has introduced the Sahulat account service, which simplifies investments in the bourse.
According to a statement by PSX, the Sahulat Account would enable customers to open accounts with the stockbrokers by only submitting their CNIC/SNIC. The account opening would not demand any evidence of an income source.
In a bid to increase the number of retail investors at the bourse, the Pakistan Stock Exchange (PSX) has introduced Sahulat Account for people intending to enter the equity market.
— Economy of Pakistan (@Pakistanomy) April 7, 2022
“They (retail investors) can open Sahulat Account by only submitting their CNIC/ SNIC and begin investing up to a maximum amount of Rs 800,000,” a statement read from the Pakistan Stock Exchange.
The Sahulat Account would open up a lot of investment opportunities for potential investors such as students, homemakers, and freshly employed people who were previously reluctant to invest in the bourse because of the long and tiring account opening process.
According to local media, all licensed financial security brokers offer the Sahulat account facility. Talking about the recent initiative, MD and CEO PSX Farrukh H. Khan said, “The Sahulat Account involves an extremely simplified and straightforward process of account opening,.”
He further added that “Coupled with recent improvements in online account opening and local KYC sharing, it has never been easier for individuals to open a brokerage account and benefit from investing in the stock market,”
The development comes shortly after the PSX announced that it would allow resident investors to virtually open an account in the stock market using only their banking applications or its portal.
The announcement was made by the governor of the State Bank of Pakistan (SBP), Reza Baqir, who said that the move was targeted at increasing and widening the outreach of the country’s capital market. This initiative comes as a part of the state banks’ new project, “Know Your Customers” (KYC).
The governor of the State Bank also lauded the Central Depository Company’s role in enabling the successful rollout of important projects such as the Roshan Equity Market and the Roshan Digital Account. He added that the initiatives have been rolled out and have seen great success. “This is only the beginning of what our vision is for the development of Pakistan’s Capital market,” said Dr. Baqir.
Read more: Banks enable investment in stock market
Meanwhile, a broad sell-off from investors has halted the stock market. The market on Thursday shed over 300 points, recording a negative 0.74 percent. The stock market has been extremely unpredictable in the days following the dissolution of the National Assembly.
The current market index stands at 43,786.8 points. Concomitantly, the political situation has also caused the Pakistani rupee to continue in a downward spiral. According to reports, the Pakistani rupee was selling at above Rs. 189 against the dollar in the interbank market during intra-day trading.