The Securities and Exchange Commission of Pakistan has introduced a major regulatory reform aimed at expanding financial inclusion by allowing Asset Management Companies to open Sehl Sarmayakari Accounts directly for resident Pakistani individuals. Under the updated framework, asset managers can now onboard investors through their own digital platforms or physical application forms, eliminating the earlier requirement to route applications through banks, branchless banking agents, or electronic money institutions. This change is expected to simplify the investment process, reduce onboarding delays, and make regulated investment products more accessible to small and first-time investors across the country.
Previously, individuals interested in opening a Sehl Investment Account had to rely on scheduled commercial banks or third-party financial service providers, which often created additional paperwork and slowed down account activation. With the new authorization, investors can directly approach asset management companies, allowing for quicker processing and a more streamlined experience while still remaining within the regulated financial system.
A Sehl Sarmayakari Account is a low-risk investment account designed for individuals who want to enter Pakistan’s capital markets with minimal documentation and modest investment limits. These accounts are particularly suitable for first-time investors, low-income earners, small savers, and individuals who prefer conservative investment options. The primary objective is to make participation in regulated investment products simple, affordable, and secure for segments of the population that have traditionally remained outside the formal financial system.
Under the revised rules, asset management companies are now responsible for the complete onboarding process. This includes collecting customer information, verifying identity documents, conducting simplified due diligence, ensuring compliance with prescribed transaction limits, monitoring investment thresholds, and maintaining proper regulatory records. Despite the simplified procedures, SECP has emphasized that investor protection and regulatory oversight will remain fully intact.
The simplified Know Your Customer framework will continue to apply to Sehl Sarmayakari Accounts, allowing for fewer documentation requirements, faster account opening, and a lower compliance burden. This approach is particularly beneficial for unbanked and underbanked individuals, making it easier for them to access formal investment channels without facing complex regulatory barriers.
SECP has also clarified that Sehl Sarmayakari Accounts are not permanent or restrictive in nature. Investors who later meet additional documentation and verification requirements can upgrade their accounts to Sahulat Sarmayakari Accounts or full Sarmayakari Accounts. These upgraded accounts offer higher investment limits, access to a wider range of investment products, and greater flexibility, providing a clear growth path as an investor’s financial capacity expands.
Through Sehl Accounts, investors can participate in low-risk collective investment schemes such as mutual funds, money market funds, and other conservative investment products. These instruments are designed to preserve capital while offering stable and modest returns, making them suitable for individuals who are new to investing or prefer limited exposure to market risk.
According to SECP, this regulatory change is part of a broader strategy to strengthen Pakistan’s capital markets by promoting micro-savings, increasing retail investor participation, expanding access to regulated financial products, and supporting low-income and risk-averse investors. By allowing asset managers to directly onboard customers, the regulator expects faster adoption of mutual funds and other investment vehicles within a well-regulated environment.
The decision is also expected to have a positive impact on financial inclusion in Pakistan, particularly in rural and semi-urban areas where access to banking infrastructure remains limited. By reducing institutional barriers and simplifying account opening, the move encourages wider participation in formal savings and investment channels and reduces reliance on informal and unregulated saving practices.
For small and first-time investors, the new framework offers several practical benefits, including reduced dependency on bank branches, quicker digital onboarding, lower documentation requirements, direct access to professional asset managers, and safer alternatives to informal investment schemes. This makes regulated investing more approachable for young professionals, freelancers, and individuals with limited savings.
SECP has reiterated that despite the relaxed onboarding process, regulatory safeguards remain robust. Asset management companies are still required to comply with transaction limits, investment caps, reporting standards, and monitoring obligations to ensure transparency and protect investor interests.
Market participants believe this initiative will help increase mutual fund participation, support the growth of the asset management sector, deepen capital markets, and encourage long-term savings behavior. By lowering entry barriers while maintaining strong oversight, SECP is laying the foundation for a more inclusive, resilient, and investor-friendly financial ecosystem in Pakistan.
