Roshan Equity Investment under RDA launched: PSX

October 28, 2022 (MLN): The capital market entities, banks, and the State Bank of Pakistan (SBP) marked the launch of the Roshan Equity Investment (REI), a product offered to non-resident Pakistanis under the umbrella of Roshan Digital Account introduced by State Bank of Pakistan in 2020, by holding a gong ceremony, said a statement issued by PSX on Thursday. 

Roshan Equity Investment is an innovative product whereby non-resident Pakistanis can invest in Pakistan’s stock market conveniently, swiftly, and digitally.

The REI account allows investors the benefit of investing in the local stock market just as they are able to avail the facilities of car financing, house financing, and purchase of government bonds through their RDAs. The marketing campaign for Roshan Equity Investment is a first of its kind where banks and the capital market SROs have come together and contributed to reaching out to potential Pakistani investors residing abroad, it added. 

Speaking at the occasion, the Chief Guest, Governor SBP, Mr. Jameel Ahmad, said that the launch of Roshan Equity Investment under the banner of the State Bank’s Roshan Digital Account is an important milestone in the development of the country’s capital market.

He stated that RDA has provided an opportunity for non-resident Pakistanis to connect with the domestic banking system and proved instrumental in attracting foreign exchange inflows of over $5.2 billion due to its ease of operability, fund repatriation, and return offered on investment.

He said that Roshan Equity Investment is another opportunity for non-resident Pakistanis where they can invest in financial instruments, equity & debt on Pakistan Stock Exchange. Governor SBP also highlighted the importance of enhanced collaboration among all stakeholders to plan and work toward the development of deeper, more efficient, and more inclusive capital markets in Pakistan. 

While Chairperson PSX, Dr. Shamshad Akhtar, stated that The Roshan Equity Investment facility is a revolutionary step forward enabling overseas Pakistanis to build their wealth and contribute to Pakistan’s economy. It was a demand of overseas Pakistanis that they conveniently invest in their home country’s stock market.

The Roshan Equity Investment facility for Roshan Digital Account holders is an excellent opportunity to benefit not only the Non-Resident Pakistanis themselves but also the economy of Pakistan by way of routing the much-needed foreign exchange into the country. I congratulate the teams of participating banks, SBP, and PSX for collaborating to introduce this facility to overseas Pakistani investors.

"Today, we are officially rolling out the marketing campaign for REI which includes the specially designed advertisement for overseas Pakistani investors as well as other REI-focused marketing features,” he added.

The SECP Chairman, Mr. Aamir Khan, through a video message, said that the enabling environment created through the digital account opening in the stock market and mutual funds, the e-IPO process, and linkage with Roshan Digital Account led to an 11% and 6% growth in investor base during the FY 2021 and FY 2022 respectively.

The CEO of Central Depository Company (CDC) of Pakistan Limited, Mr. Badiuddin Akber, added, “CDC is proud to be the main operational hub for all the investment made by RDA holders in PSX. We are currently providing world-class complete digital settlement services to more than 10,000 RDA holders around the globe, and with this collaborative campaign, we expect that the Overseas Pakistani diaspora will come to know more about this lucrative avenue of investment and will provide us with a chance to serve them with the best of our capabilities. We are thankful to SBP, SECP, and all the banks for this initiative and look forward to RDA holders investing in PSX.”

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