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KARACHI: The Securities and Exchange Commission of Pakistan (SECP) has approved a ground-breaking initiative to enable all Pakistani resident and non-resident investors to open online accounts in the capital market.
The new regime, which is part of SECP’s digital transformation agenda, allows investors to seamlessly open an account with a broker from anywhere in the country without requiring to submit any documents physically or visit a broker.
However, to ensure maximum investor protection, an alternate online Customer Verification process has been introduced for the opening of online accounts. The online verification will be conducted independently by the Centralized KYC Organization.
Here’s how to create an online account to invest in stocks:
1. The customer accesses the website of the brokerage account and selects the online account opening option.
2. A webpage will open, requesting the customer to provide CNIC/NICOP/POC number, IBAN, Email Address, and Mobile number.
3. The information will be forwarded to the NCCPL for verification, and One Time Password (OTP) will be generated.
4. The customer will receive OTP on the mobile number or email. After entering the OTP, the account opening form will open.
5. The customer will fill the form electronically, agree to the terms and conditions, and attach scanned copies of supporting documents listed on the page and submit.
6. The broker will register the UIN of the customer with NCCPL, and open the trading account.
7. NCCPL will send an SMS or Email to the customer, informing about the opening of the account.
The new account opening system is a continuation of SECP’s reform agenda that aims at enhancing investor outreach, introducing digitization and ensures robust growth of the capital markets.