SECP now allows asset management companies in Pakistan to open Sehl Sarmayakari Accounts directly, making it easier for low-risk investors to start micro-savings in mutual funds.
What Has SECP Changed for Sehl Sarmayakari Accounts?
The Securities and Exchange Commission of Pakistan (SECP) has eased the process for opening Sehl Sarmayakari Accounts, a low-risk investment option aimed at small savers. Under the revised framework, Asset Management Companies (AMCs) can now open these accounts directly for resident Pakistani individuals through their own digital platforms or physical forms. This is a major shift from the earlier model, where customers could only access Sehl Accounts via branchless banking agents, electronic money institutions (EMIs) or scheduled banks.
By allowing AMCs to deal with customers directly, SECP is trying to remove extra layers between investors and fund managers. This can reduce friction in the onboarding process, cut down processing time and give investors more control over how and where they start their investment journey.
How Will Asset Management Companies Handle Sehl Accounts?
Under the new rules, AMCs are responsible for collecting customer information, performing necessary checks and ensuring that all transactions stay within the limits prescribed for Sehl Sarmayakari Accounts. These accounts will continue to operate under a simplified due diligence and Know Your Customer (KYC) regime, which is designed to keep the process quick and low-cost while still meeting regulatory requirements.
This means that investors can open accounts with less paperwork compared to traditional investment products, while AMCs must still monitor activity to prevent misuse. The balance SECP is aiming for is clear: make it easier for low-risk, low-income individuals to participate in the capital market without compromising on basic investor protection and regulatory oversight.
Upgrading from Sehl to Sahulat and Full Investment Accounts
An important feature of the framework is that Sehl Sarmayakari Accounts are not a dead end. Once a customer is comfortable and ready to invest more, their Sehl Account can be upgraded to a Sahulat Sarmayakari Account or a regular Sarmayakari Account. This upgrade becomes possible when the investor provides additional documentation and fulfills the extra KYC requirements specified by SECP and the AMC.
After the upgrade, investors can move beyond the lower value limits set for Sehl Accounts and access a wider range of capital market products, including higher-value investments in mutual funds and other collective investment schemes. In this way, Sehl Accounts act as a stepping stone, helping new investors gradually move from micro-savings to more substantial, long-term investment plans.
Boosting Micro-Savings and Financial Inclusion in Pakistan
The revised Sehl Sarmayakari framework fits into SECP’s broader push to promote financial inclusion and expand access to capital markets. Many low-income Pakistanis either do not have access to formal investment products or are discouraged by complex procedures and high minimum investment amounts. Sehl Accounts are designed to address these barriers by offering an easy, low-ticket way to start investing in low-risk collective investment schemes, such as money market or income funds.
By allowing digital and physical onboarding directly through AMCs, SECP hopes more people will be able to start micro-savings, even with small amounts. Over time, regular contributions to such products can help build financial cushions, support long-term goals and deepen the overall savings culture in the country.
What This Means for Small Investors
For small and first-time investors, the key benefit of this development is convenience. Instead of visiting a bank branch or relying on agents, they can approach an asset management company directly through its website, app or physical office to open a Sehl Sarmayakari Account. The simplified KYC process, low-risk product selection and clear investment limits make these accounts suitable for people who are new to capital markets and want to start with modest amounts.
Before opening any account, however, investors should still take time to understand the basic features of the mutual funds on offer, including risk level, expected returns, fees and lock-in conditions, if any. Reading product documents, asking questions and comparing options across different AMCs can help individuals make better, more informed decisions about where to place their savings.
