On Monday, the PSX announced that the Securities and Exchange Commission of Pakistan (SECP) had approved the enhancement of the position limit for Sahulat Accounts from Rs800,000 to Rs1 million.

By opening a basic account with a brokerage house after submitting their computerized/smart national identification cards, small retail investors can buy and sell shares on the PSX.

Pakistani individuals like students, housewives, novice investors, and those who want to invest in the stock market will find this account ideal… It said, however, that some may have felt hesitant to open a conventional account due to the tedious process of submitting numerous documents.

The majority of licensed securities brokers now offer Sahulat accounts, which can also be opened online.

Sahulat accounts do not require investors to submit evidence of their income source, unlike traditional brokerage accounts.

An individual who has been identified as “low risk” through risk assessment is eligible to open a Sahulat Account. Customers’ identities may be verified by the securities broker as part of simplified due-diligence measures.

For opening a Sahulat account, the process is extremely simplified and straightforward. It has never been easier for individuals to open a brokerage account and invest in the stock market thanks to recent improvements in online account opening and KYC [know your client] sharing,” PSX CEO Farrukh H. Khan said in a statement.

Five months after the rollout of Sahulat Account, Khan said a “behavioural shift” among investors occurred as a result of the simpler onboarding process.

Over 45 percent of new investors on-boarded by stockbrokers in the preceding three months were from second- and third-tier cities, he said.