The Central Depositary Company (CDC) has notified the steps and proceduresfor overseas Pakistanis who wish to invest in the stock market, PakistanStock Exchange, through Roshan Digital Account (RDA), in order tofacilitate them on its use.Account Opening
Overseas Pakistanis shall approach any of the designated Bank’s onlineportal and submits details and soft copies of documents to the bank throughthe portal. On the basis of the information provided by non-residentPakistanis (NRP), the designated bank will perform its own KYC and duediligence and confirm the status of the account opening to the NRP in 48hours.
After the opening of a bank account, the bank will provide NRP the optionof 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 willask the NRP to give consent to allow the bank to share his/her informationand soft copies of documents with CDC and subsequently with other stockmarket entities. It will then obtain the agreement of NRP on terms andconditions of custody and trading accounts and will ask the NRP to acceptthe terms and conditions, and then select a brokerage house.
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In the next move, the bank will transmit the aforementioned details andsoft copies of documents of NRP along with IBAN to the CDC (through API orother electronic mechanisms). CDC will then send an email intimation to NRPof receiving the information from the Bank and will transmit theinformation and soft copies of documents to the respective brokerage houseand to NCCPL for the opening of UIN.
Subsequently, the brokerage house will perform their own due diligence andconfirm to NRP and CDC regarding the opening of the trading account (CKO isexempted for all such accounts) within 24 hours/one business day, alongwith the details of the online trading portal.
The information received from CDC will suffice all the information requiredby the broker for the opening of the trading account, and CDC will alsoconfirm to the brokerage house that NRP has given his/her consent for theopening of the trading account with the broker. The confirmation from theBroker regarding the opening of the Trading account will constitute theacceptance of the offer of NRP.
The broker may also refuse to open the account of NRP, at its solediscretion. In case there is no response from the broker within 24 hours orrefusal from the broker to open the account, CDC will contact theBroker/NRP and request for the future course of action from him. Broker mayalso request for more documents from NRP directly to perform Enhanced DueDiligence (EDD). It may also take further confirmations from NRP directlylike confirmation on fee structure, etc., after the opening of tradingaccount
