ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has abolished the requirement for banks to obtain separate licence for distributing mutual funds and private pension funds to Roshan Digital Accounts (RDAs).

This relaxation has been granted to facilitate overseas Pakistanis to invest in mutual funds and private pension funds managed by Asset Management Companies and comes as part of SECP’s efforts to increase investor-base in Pakistan’s capital markets by enabling investments through RDAs.

However, the permission is only applicable to banks that are eligible to open RDAs. For transfers to accounts other than RDAs, the licence requirement is still applicable under Securities & Future Advisor Regulations, 2017.

The SECP has said that it is expected that this initiative will broaden the range of available investment avenues for Overseas Pakistanis and increase flow of foreign remittances to the country.

Published in Dawn, December 23rd, 2021