SECP eases mutual fund investment for small investors

May 14, 2026 (MLN): Pakistan's Securities and Exchange Commission (SECP) has overhauled its mutual fund account framework, raises investment limits for small investors in a push to deepen retail participation in the country's capital markets.

Under a newly issued circular, the regulator has more than quadrupled the investment ceiling for Sehl Accounts from Rs200,000 to Rs1 million while tripling the limit for Sahulat Accounts, which can now accommodate investments of up to Rs3 million, up from the previous Rs1 million cap.

Annual investment caps across both account types have been scrapped entirely, giving investors the freedom to invest and redeem without yearly restrictions, according to a press release issued.

One of the most significant changes under the new framework is the elimination of duplicate KYC verification.

Investors who already hold accounts with regulated financial institutions  including commercial banks, microfinance banks, and electronic money institutions  will no longer be required to undergo a separate identity verification process when opening Sehl or Sahulat Accounts with Asset Management Companies (AMCs).

The SECP said that since these customers have already been vetted by their respective institutions, requiring them to resubmit documentation was redundant and an unnecessary barrier to entry.

The regulator has also streamlined due diligence requirements for online account opening, citing improvements in biometric verification and liveness detection technology.

The changes are designed to reduce duplication, improve operational efficiency, and allow investment accounts to be opened more quickly  without compromising verification standards.

SECP Chairman Dr. Kabir Ahmed Sidhu,  has set an ambitious target of growing Pakistan's capital market investor base to 2.5 million.

The initiative is expected to encourage more people to invest in regulated financial products and benefit from dividends, savings, and Pakistan's economic growth.

The reforms align with Pakistan's broader shift toward digital financial services and signal the SECP's intent to modernize market infrastructure while strengthening enforcement and transparency mechanisms.

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