ISLAMABAD: A need for banks to get a separate licence for distributing mutual funds and private pension funds to Roshan Digital Accounts (RDAs) has been eliminated by the Securities and Exchange Commission of Pakistan (SECP), according to a statement released on Wednesday.
“This relaxation has been granted to facilitate overseas Pakistanis to invest in mutual funds and private pension funds managed by Asset Management Companies (AMCs).” SECP stated. It comes as part of the commission’s efforts to increase investor-base in Pakistan’s capital markets by enabling investments through RDAs, it added.
However, the permission is only applicable to banks that are eligible to open RDAs. For transfers to accounts other than RDAs, the license requirement is still applicable under Securities & Future Advisor Regulations, 2017.
The initiative is expected to broaden the range of available investment avenues for Overseas Pakistanis and increase flow of foreign remittances to the country.