Roshan Digital Account is an initiative by the State Bank of Pakistan to facilitate Non-Resident Pakistanis (NRPs) in opening a digital bank account with designated commercial banks in Pakistan. This account can easily be opened through an online portal / mobile application by providing minimum documents in just 48 hours. Most importantly, there is no need to visit a bank branch or the consulate/embassy of Pakistan. Having a Roshan Digital Account enables to avail banking services including fixed deposit products offered by banks, stocks / equities being traded on Pakistan Stock Exchange, buy Government Bonds and Securities, etc. Additionally, other investment options including real estate, mutual funds and Naya Pakistan Certificates are also in the pipeline. Learn more about Roshan Digital Account here.
This blog primarily concerns with how to invest in Pakistani Stock market using the Roshan Digital Account. Through the Roshan Digital Account (RDA), NRPs can now invest in the Pakistan Stock Market through Central Depository Company (CDC).
Procedure for Opening a Trading Account
Firstly, NRP will submit details and scanned copies of required documents through designated commercial banks’ portal.
The bank will conduct its due diligence and confirm the status of account opening to the NRP in 48 hours.
After opening of RDA, Bank will provide NRP the option of investing in the following asset classes:
a) Naya Pakistan Certificates (NPCs)
b) Stocks (equities, debt, others)
When NRP selects Stocks as the mode of investment, the concerned Bank will ask the NRP to give consent to allow the bank to share his/her information and scanned copies of documents with CDC / brokerage firm / National Clearing Company of Pakistan Limited (NCCPL). Further, the bank will also obtain agreement on terms & conditions of Custody and Trading Accounts.
Subsequently, the bank will ask to select a brokerage house for trading purpose.
Once the process is complete, the commercial Bank will forward NRP details along with scanned copies of documents and IBAN to CDC electronically.
After receiving the details from bank, CDC will send an email intimation to NRP.
Thereafter, CDC will forward the details and digital form of documents to the respective brokerage house as well as NCCPL for opening of NRP’s Unique Identification Number (UIN).
Brokerage firm will perform their own due diligence and confirm opening of trading account to NRP and CDC within one working day, along with the particular of online trading portal.
Now the NRP can trade in Pakistani stock market using brokerage firm’s online portal.
Clearing, Settlement and Custody
The NRP has following two options for settlement and custodianship purpose:
- Custodial Services through Bank (Direct Bank Model)
- Custodial Services through CDC (CDC Direct Settlement Service)
Under the Direct Bank Model, respective Bank will be responsible for all the matters related to Clearing, Settlement and Custody of the NRP.
Under CDC DSS Model, the CDC will also open IAS account and share the details of CDC access with the NRP.
Repatriation of Funds
One of the most important feature of RDA is that the Account Holder can easily repatriate the funds back to the country of stay.
NRP can lodge request to transfer the funds back to RDA anytime through web portal or email. Subsequently, once the funds are received in RDA, NRP can request to respective Bank for repatriation of funds overseas.
List of required documents
- Original scanned CNIC / NICOP / POC as the case may be.
- Original scanned Passport, only first 2 pages.
- Proof of NRP status through scanned copy of POC, visa or entry/ exit stamps etc.
- Proof of Source of Income such as job certificate, salary slips, etc.
- Live photo
Banks Connected with CDC
Brokers Connected with CDC
- AKD Securities Limited
- Alfalah CLSA Securities (Pvt) Limited
- Arif Habib Limited
- BMA Capital Management Limited
- Foundation Securities (Pvt.) Limited
- Khadim Ali Shah Bukhari Securities Limited
- JS Global Capital Limited
- Market 786 (Pvt.) Limited
- Muhammad Munir Muhammad Ahmed Khanani Securities (Pvt.) Limited
- Topline Securities Limited
