Securities and Exchange Commission of Pakistan (SECP) Chairman Aamir Khan Thursday said that the launch of a central digital distribution gateway portal will further facilitate investors and non-resident Pakistanis to invest in the stock exchange by providing a single-entry point in the capital markets.
Addressing the “Launch of Roshan Equity Investment Account Campaign” held at the Pakistan Stock Exchange, SECP Chairman said that the launch of the EMLAAK platform, as the country’s first digital distribution and aggregator platform is a major stride towards expanding investor outreach and improving customer experience.
This digital platform is aimed to facilitate investors in making informed decisions by providing a convenient, consolidated, and interactive dashboard of investments empowering them to invest with convenience without having to physically visit the assets management companies (AMCs), said the SECP Chairman.
He remarked that increasing investor outreach has always been the top priority of SECP, and the launch of a central gateway portal will further facilitate investors, by providing a single-entry point in the capital markets. He expressed hope that the launch of the Roshan Equity Investment campaign will act as a stimulus in expanding the investor base in the Pakistani capital market.
He said that the measures have resulted in positive outcomes for the industry, as more than 10,000 Roashan Digital Accounts have been opened by the Central Depository Company (CDC), resulting in an inflow of more than Rs. 7 billion. This figure is indeed very encouraging as all of us move towards deepening
The SECP Chairman said, “Our local capital markets through increasing the investor base. We, at SECP, understand that Pakistani capital markets hold huge potential for investments.”
He also highlighted that to mobilize investments to a level commensurate with their potential, the SECP’s regulatory philosophy hinges on the following core principles
- Improving ease of doing business and eliminating entry barriers
- Simplifying regulatory processes and reducing the cost of doing business
- Promoting financial inclusion and increasing access to finance.
Highlighting some of the key initiatives supported by SECP for increasing the investor base in Pakistan, he said that firstly, digital account opening and onboarding of investors in the stock market and mutual funds, electronic initial public offering (e-IPO) process for both equity and debt issues and linkage with Roshan Digital Account were enabled. As a result, the number of investors saw an 11 percent growth in the fiscal year 2020-21 and a 6 percent growth in FY 2022. During the last IPO, 85 percent of retail investment was done through e-IPO.
Secondly, the recently introduced shared KYC Framework has facilitated resident Pakistanis with existing bank accounts to open trading accounts by allowing sharing of KYC information available with their respective banks, he said.
He also stated that the launch of the regulatory sandbox to spur innovation in SECP’s regulated sectors has facilitated the testing of solutions related to blockchain use cases for capital markets, digital identity/anti-money laundering (AML)/KYC solutions, and digitally-enabled peer-to-peer lending. As digitalization has become indispensable in a post-COVID corporate world, investments made solely through online channels are fast becoming a norm, remarked the chairman.
To address this matter, SECP has developed regulatory frameworks for online-only brokers, and digital insurance companies, as enabling a digital regulatory environment for the asset management industry (encompassing digital investment advisors, digital trustees, and digital asset management companies, he added.
