PTI government’s yet another initiative for the overseas Pakistanis
The Central Depositary Company (CDC) has notified the steps and procedures for overseas Pakistanis who wish to invest in the stock market, Pakistan Stock Exchange, through Roshan Digital Account (RDA), in order to facilitate them on its use. Account Opening
Overseas Pakistanis shall approach any of the designated Bank’s online portal and submits details and soft copies of documents to the bank through the portal. On the basis of the information provided by non-resident Pakistanis (NRP), the designated bank will perform its own KYC and due diligence and confirm the status of the account opening to the NRP in 48 hours.
After the opening of a bank account, the bank will provide NRP the option of investing in the following asset classes:
A) Naya Pakistan Certificates.
B) Stocks (equities, debt, others)
In case NRP selects “Stocks/CDC” for the mode of investment, the bank will ask the NRP to give consent to allow the bank to share his/her information and soft copies of documents with CDC and subsequently with other stock market entities. It will then obtain the agreement of NRP on terms and conditions of custody and trading accounts and will ask the NRP to accept the terms and conditions, and then select a brokerage house.
In the next move, the bank will transmit the aforementioned details and soft copies of documents of NRP along with IBAN to the CDC (through API or other electronic mechanisms). CDC will then send an email intimation to NRP of receiving the information from the Bank and will transmit the information and soft copies of documents to the respective brokerage house and to NCCPL for the opening of UIN.
Subsequently, the brokerage house will perform their own due diligence and confirm to NRP and CDC regarding the opening of the trading account (CKO is exempted for all such accounts) within 24 hours/one business day, along with the details of the online trading portal.
The information received from CDC will suffice all the information required by the broker for the opening of the trading account, and CDC will also confirm to the brokerage house that NRP has given his/her consent for the opening of the trading account with the broker. The confirmation from the Broker regarding the opening of the Trading account will constitute the acceptance of the offer of NRP.
The broker may also refuse to open the account of NRP, at its sole discretion. In case there is no response from the broker within 24 hours or refusal from the broker to open the account, CDC will contact the Broker/NRP and request for the future course of action from him. Broker may also request for more documents from NRP directly to perform Enhanced Due Diligence (EDD). It may also take further confirmations from NRP directly like confirmation on fee structure, etc., after the opening of trading account