ISLAMABAD
Pakistan’s capital markets regulator has introduced sweeping reforms to simplify mutual fund investments for retail investors, raising investment limits and removing repeated verification requirements in a bid to expand public participation in regulated financial products.
The Securities and Exchange Commission of Pakistan said the new measures are designed to align mutual fund investments with the country’s rapidly evolving digital financial services ecosystem while making account opening faster and more accessible for small investors.
Under a new circular issued by the regulator, the investment ceiling for Sehl Accounts has been increased fivefold to Rs1 million from Rs200,000, while Sahulat Account limits have been raised to Rs3 million from the previous Rs1 million threshold.
The reforms also eliminate the need for duplicate Know Your Customer (KYC) verification for investors already maintaining accounts with regulated financial institutions, including banks, microfinance banks and electronic money institutions.
The regulator said customers verified by their existing financial institutions will now be able to open Sehl and Sahulat Accounts with Asset Management Companies (AMCs) without resubmitting KYC documents, significantly reducing onboarding friction for digital investors.
The Securities and Exchange Commission of Pakistan added that it has streamlined due diligence requirements for online account opening in view of improved biometric verification and liveliness check technologies, while maintaining safeguards against fraud and financial misuse.
Officials said the move is expected to speed up account opening procedures, improve operational efficiency and encourage wider retail participation in Pakistan’s mutual fund industry.
In another major change, annual investment caps on these accounts have been removed, allowing investors greater flexibility to invest and redeem funds without restrictive yearly limits.
The reforms form part of a broader push by the regulator to deepen Pakistan’s capital markets and increase financial inclusion through digital investment channels.
Kabir Ahmed Sidhu, chairman of the Securities and Exchange Commission of Pakistan, has set a target of increasing the number of investors in Pakistan’s capital markets to 2.5 million as authorities seek to attract more retail savings into formal investment products.
The regulator said it is focusing on simplifying investment procedures, improving digital access and strengthening enforcement mechanisms to promote transparency, investor confidence and fair market practices.
Analysts say the measures could help accelerate participation in regulated savings and investment products at a time when Pakistan is pushing broader digitalization of financial services and expanding access to formal financial markets.
