The Securities and Exchange Commission of Pakistan has introduced major reforms aimed at making mutual fund investing easier for small investors by increasing investment limits, simplifying digital account opening, and removing repeated verification requirements for eligible customers.
Under a newly issued circular, the SECP raised the investment threshold for low-risk accounts used by retail investors. The investment limit for Sehl Accounts has increased to Rs. 1 million from the previous Rs. 200,000. Similarly, Sahulat Accounts can now facilitate investments of up to Rs. 3 million, compared with the earlier limit of Rs. 1 million.
The regulator has also removed annual investment caps, allowing investors greater flexibility in investing and redeeming funds without yearly restrictions. The move is designed to encourage broader participation in Pakistan’s capital markets and align investment practices with the country’s expanding digital financial ecosystem.
As part of the updated framework, customers who already maintain accounts with regulated financial institutions, including banks, microfinance banks, and electronic money institutions, will no longer be required to complete separate Know Your Customer verification when opening Sehl and Sahulat accounts with Asset Management Companies.
According to the SECP circular, customers previously verified by financial institutions can now use existing authentication records, removing the need to repeatedly submit KYC documents. The regulator also expanded earlier digital onboarding measures and allowed Asset Management Companies to onboard investors through secure integration with regulated institutions.
The commission further eased online account opening requirements through stronger biometric verification and facial recognition systems.
The updated process is expected to reduce duplication, improve operational efficiency, and enable quicker account opening while maintaining verification standards.
These reforms are part of a broader effort by the SECP to make investing more accessible and strengthen retail participation. SECP Chairman Dr. Kabir Ahmed Sidhu has set a target to increase the number of investors in Pakistan’s capital market to 2.5 million.
The regulator said its focus remains on simplifying investment procedures, improving digital accessibility, and strengthening market transparency.
