SECP Lets Asset Managers Open Sehl Investment Accounts Directly. The Securities and Exchange Commission of Pakistan (SECP) has taken a major step to improve financial inclusion by allowing Asset Management Companies (AMCs) to open Sehl Sarmayakari Accounts directly for resident Pakistani individuals.
Under the new framework, AMCs can now offer these low-risk investment accounts through their own digital platforms or physical application forms, removing the earlier dependency on banks and branchless agents.
This regulatory change is expected to make investing simpler, faster, and more accessible for small investors across Pakistan.
What Has Changed in SECP’s New Decision?
Previously, investors could only open Sehl Investment Accounts through:
- Scheduled commercial banks
- Branchless banking agents
- Electronic Money Institutions (EMIs)
Now, SECP has officially authorized AMCs to open these accounts directly, without routing applications through third-party financial institutions.
This means investors can start investing directly with asset managers, reducing delays, paperwork, and onboarding complexity.
What Is a Sehl Sarmayakari Account?
A Sehl Sarmayakari Account is a low-risk investment account designed for individuals who want to enter the capital market with minimal documentation and lower investment limits.
These accounts are especially suitable for:
- First-time investors
- Low-income individuals
- Small savers
- Risk-averse customers
The goal is to make capital market participation simple, affordable, and secure.
Key Responsibilities of Asset Management Companies (AMCs)
Under the revised SECP framework, AMCs will now be responsible for the entire onboarding process.
AMCs must:
- Collect customer information
- Verify identity and basic documentation
- Perform simplified due diligence
- Ensure compliance with transaction limits
- Monitor investment thresholds
- Maintain regulatory records
Despite simplified requirements, regulatory oversight and investor protection remain intact.
Simplified KYC Still Applies
SECP has confirmed that Sehl Accounts will continue to operate under a simplified Know Your Customer (KYC) regime.
This means:
- Fewer documents required
- Faster account opening
- Reduced compliance burden
- Easier access for unbanked individuals
The simplified KYC framework is a key reason why Sehl Accounts are popular among new and small investors.
Option to Upgrade Sehl Accounts in the Future
SECP has also clarified that Sehl Sarmayakari Accounts are not permanent limits.
Once investors meet additional documentation requirements, they can upgrade their accounts to:
- Sahulat Sarmayakari Accounts
- Full Sarmayakari Accounts
Why upgrade?
Upgraded accounts allow:
- Higher investment limits
- Broader access to investment products
- Greater flexibility in portfolio size
This provides a clear growth path for investors as their financial capacity increases.
What Can Investors Invest In Through Sehl Accounts?
Sehl Sarmayakari Accounts allow investors to participate in low-risk collective investment schemes, including:
- Mutual funds
- Money market funds
- Conservative investment products
These instruments are designed to protect capital while offering modest returns, making them suitable for beginners.
Why SECP Introduced This Change
According to SECP, this move is part of a broader regulatory strategy aimed at strengthening Pakistan’s capital markets.
Key objectives include:
- Promoting micro-savings
- Increasing retail investor participation
- Expanding access to capital market products
- Supporting low-income and low-risk investors
- Encouraging digital financial services
- Improving overall financial inclusion
By allowing AMCs to onboard customers directly, SECP expects faster adoption of regulated investment products.
Impact on Financial Inclusion in Pakistan
This decision directly supports Pakistan’s financial inclusion goals.
Many individuals remain outside the formal banking system, especially in rural and semi-urban areas. By simplifying account opening and reducing institutional barriers, SECP is enabling:
- Wider investor participation
- Easier access to regulated investments
- Reduced reliance on informal saving methods
This approach also helps shift savings into documented and regulated financial channels.
Benefits for Small and First-Time Investors
For everyday Pakistanis, the new framework offers clear advantages:
- No need to visit a bank branch
- Faster digital onboarding
- Lower documentation hurdles
- Direct access to professional asset managers
- Safer alternatives to informal investments
This is particularly beneficial for young professionals, freelancers, and small savers.
Regulatory Oversight Remains Strong
SECP has emphasized that while onboarding is simplified, investor protection remains a top priority.
AMCs must still comply with:
- Prescribed transaction limits
- Investment caps
- Reporting requirements
- Monitoring obligations
This ensures that investor funds remain protected and regulated at all times.
What This Means for Pakistan’s Capital Market
Industry experts believe this step will:
- Increase mutual fund participation
- Strengthen asset management sector growth
- Improve capital market depth
- Encourage long-term savings behavior
By lowering entry barriers, SECP is building a more inclusive and resilient investment ecosystem.
FAQs
Can anyone open a Sehl Sarmayakari Account?
Yes. Resident Pakistani individuals meeting basic requirements can open a Sehl Account.
Is a bank account still required?
Basic banking or payment details may be required, but account opening no longer depends on bank branches.
Are Sehl Accounts safe?
Yes. These accounts operate under SECP’s regulatory framework with investor protection rules.
Can I invest large amounts through a Sehl Account?
No. Sehl Accounts have investment limits. For higher investments, upgrading is required.
Can Sehl Accounts be upgraded later?
Yes. They can be upgraded to Sahulat or full Sarmayakari Accounts after additional verification.
Conclusion
SECP’s decision to allow Asset Management Companies to open Sehl Sarmayakari Accounts directly marks a significant milestone for Pakistan’s financial sector.
By simplifying onboarding, expanding access, and maintaining regulatory safeguards, this initiative supports financial inclusion, micro-savings, and capital market growth.
