Under the State Bank of Pakistan’s (SBP) ‘Shared KYC (Know Your Customer) Project, bank account holders can open accounts in the capital market using their bank’s portal or app. This initiative will provide a way for wider outreach to the equity market. For the KYC project, the Central Depository Company (CDC) will act as an information-sharing bridge for the digital opening of capital market accounts to remove duplicate information.
According to the central bank governor Dr Reza Baqir, it is only the beginning of the vision for developing Pakistan’s Capital market. Furthermore, the Shared KYC Project will prove to be a good initiative for the growth of the equity market.
The project will help solve the issue of account opening in the Pakistan Capital market. It will save a lot of time and effort and help in improving the investor base. This initiative will increase the penetration of domestic investors and attract them to formal avenues, including investment in the equity market. It will also help companies grow and raise capital when new investors seek investment avenues.
The government has also done several successful operations for Pakistan Capital Market, namely Roshan Equity Investment for Roshan Digital Account (RDA) holders and RAAST for dividend payments in collaboration with the capital market and commercial banks. However, the central bank is committed to working further to develop the country’s capital market.
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