SECP Chief pushes for faster, digital-first investment account opening

September 24, 2025 (MLN):  Pakistan's securities regulator is spearheading a major initiative to overhaul how investors open accounts in the country's capital markets to eliminate bureaucratic hurdles that have long deterred potential market participants.

The Securities and Exchange Commission of Pakistan (SECP) Chairperson convened senior executives from the country's key market infrastructure institutions to transform the investment onboarding experience from a cumbersome process into a streamlined, digital-first journey.

The high-stakes meeting brought together chief executives from Pakistan Stock Exchange (PSX), Central Depository Company (CDC), and National Clearing Company of Pakistan (NCCPL), the three pillars of Pakistan's capital market infrastructure.

The agenda centered on a single but critical objective: making it easier for Pakistanis to invest in their nation's markets.

"We need to adopt an investor-centric perspective," the SECP Chairperson emphasized during the session, according to sources familiar with the discussions.

The regulator's vision encompasses a complete reimagining of how new investors interact with Pakistan's financial markets, prioritizing speed, transparency, and user experience over traditional paperwork-heavy procedures.

The initiative represents a significant shift for Pakistan's capital markets, which have historically operated through processes that many potential investors found intimidating or overly complex.

Under the new directive, market infrastructure institutions must identify existing pain points and develop concrete solutions that make account opening "quicker, more efficient, cost-effective, transparent, and user-friendly."

Pakistan Stock Exchange has been designated as the lead coordinator for this transformation, tasked with developing a comprehensive roadmap that includes specific milestones and timelines.

The exchange will work closely with CDC and NCCPL, along with other relevant stakeholders, to ensure a cohesive approach across the entire market ecosystem.

This collaborative framework is designed to eliminate the fragmented experience that has characterized investment account opening in Pakistan, where investors often had to navigate separate processes with different institutions, leading to delays and frustration.

The account opening reform is part of SECP's broader modernization agenda for Pakistan's capital market infrastructure.

The regulator has been increasingly focused on digital transformation initiatives that can bring Pakistani markets in line with international standards and attract both domestic and foreign investment.

The emphasis on digital onboarding capabilities reflects global trends where markets that have simplified their investor onboarding processes have seen significant increases in retail participation.

Countries like India and Bangladesh have demonstrated how technology-driven reforms can democratize market access and boost trading volumes.

The timing of this initiative is particularly significant as Pakistan seeks to strengthen its capital markets as a driver of economic growth.

Simplified account opening procedures could unlock investment from Pakistan's growing middle class and tech-savvy young population, who have previously been deterred by complex bureaucratic requirements.

Industry observers suggest that streamlined processes could also make Pakistani markets more attractive to foreign investors, who often cite regulatory complexity as a barrier to market entry.

By creating clearer, more efficient pathways for investment, the reforms could enhance Pakistan's position as an emerging market investment destination.

While specific timelines were not disclosed, the SECP's directive for a "roadmap with specific milestones" suggests that the reforms will follow a structured implementation schedule.

The regulator emphasized the need for actionable steps to address current bottlenecks and enhance digital capabilities across all market infrastructure institutions.

The success of this initiative will largely depend on the coordination between PSX, CDC, and NCCPL, as well as their ability to integrate their systems and procedures into a unified, user-friendly experience.

Copyright Mettis Link News