SECP Raises Investment Limits for Simplified Mutual Fund Accounts

The Securities and Exchange Commission of Pakistan has revised investment thresholds for simplified mutual fund accounts and relaxed multiple onboarding requirements as part of regulatory measures aimed at improving retail investor access to regulated investment instruments within Pakistan’s capital markets.

Under a circular issued on Thursday, the permissible investment limit for Sehl Accounts has been increased from ₨200,000 to ₨1 million, while the ceiling applicable to Sahulat Accounts has been enhanced from ₨1 million to ₨3 million.

The regulator has additionally withdrawn annual investment restrictions, enabling investors to subscribe to and redeem mutual fund units without being subject to fixed yearly transaction caps.

In a further compliance-related facilitation measure, individuals already maintaining accounts with regulated financial entities — including commercial banks, microfinance banks, and electronic money institutions — will no longer be required to undergo a separate Know Your Customer (KYC) verification process when opening Sehl or Sahulat Accounts with asset management companies.

According to the SECP, such customers have already completed verification procedures through their existing regulated institutions, thereby eliminating the need for repetitive documentation and duplicate due diligence requirements.

The commission also introduced procedural simplifications for digital account opening by reducing additional verification obligations, citing advancements in biometric verification and liveliness detection technologies.

Regulatory officials stated that the amendments are intended to minimise operational duplication, accelerate onboarding timelines, and improve administrative efficiency for asset management companies operating in Pakistan.

The measures form part of the SECP’s broader policy initiative aimed at increasing retail participation in Pakistan’s capital markets through accessible and digitally streamlined investment mechanisms.

SECP Chairman Kabir Ahmed Sidhu has reportedly set a strategic target of expanding Pakistan’s capital market investor base to 2.5 million participants.

The regulator further stated that the revised framework is expected to encourage wider public participation in mutual funds and other regulated financial investment products.